Yang Inc. produces only one product, berry baskets, which it sells for P72 each. Unit variable costs are P32 and total fixed expenses are P15,000. Actual sales for the month of June totaled 2,000 units.

Required:

1. How much is the current operating income of the company?
2. Compute the break-even point in peso and in units
3. To attain an after tax profit of P40,000 with a tax rate of 20%, the number of units to be sold will be?
4. Compute the margin of safety in units and peso for the company for June.
5. Compute the degree of operating leverage for the month of June.
6. If the company is expecting for units sale to increase by 20% in July, what is the expected operating income?

Answer rating: 100% (QA)

Lets go through each of the required calculations step by step Current Operating Income Operating Income Sales Revenue Total Variable Costs Total Fixe... View the full answer