1. What is the breakeven sales in peso?
2. How much is the margin of safety
3. The number of units that must be sold if the company wants to earn an income after tax of 150,000. Assuming an income tax rate is 25%?
4. The number of units that must be sold if the company wants to earn income before tax of 120,000?
5. What is the contribution margin per unit?
6. Assume the sales increase by 20%,how much will be the increase in net income? (in pesos)
7. Compute the company's operating leverage. (2 decimal places)
8. What is breakeven sales in units?
9. What is the contribution margin ratio?

Sales (25,000 units x 100). 2,500,000

Less: Cost of goods sold

Direct materials 500,000

Direct labor 375,000

Variable factory overhead 250,000

Fixed factory overhead 425,000 1,550,000

Gross profit 950,000

Less: Operating expenses 125,000

Variable marketing expense 50,000

fixed marketing expense 250,000

fixed administrative expense 175,000 600,000

Net income: 350,000

2. 
   

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