1. High-Low Method. You are requested to help in the preparation of fixed budgets. The study made of the shipping expenses showed the following over a period of time, and there is no indication that past trends will change in the future:

Sales Volume	ShippingExpense
10,300	P3,090
11,700	3,100
13,500	3,330
27,500	5,850
9,300	2,889
9,700	2,910
14,000	4,170
15,000	4,200
10,000	2,900
10,500	3,225

Required:

(a)Variable cost per unit

(b)The fixed cost portion

(c)The total amount of shipping expense, assuming that the sales volume is 11,300.

2. Break-even Point and Other Information. Presented hereunder is the Statement of Comprehensive Income of DE Corporation for the year ended December 31, 2020.

DE Corporation

Statement of comprehensive income

For the Year Ended December 31, 2020

Sales (20,000 units) P300,000

Less: Cost of Sales 180,000

Gross Income 120,000

Less: Selling and Administrative Exp. 80,000

Operating income 40,000

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Other data:

1/3 of the cost of sales is fixed

75% of the selling and administrative expenses is variable

Required:

Determine the following

(a)Total fixed cost

(b)Variable cost per unit

(c)Variable cost ratio

(d)Contribution margin per unit

(e)Contribution margin ratio

(f)Break-even point in units

(g)Break-ven point in pesos

(h)Margin of safety in units

(i)Margin of safety in pesos

(j)Margin of safety ratio

(k)Required sales in units if the company wants to earn an operating income of P60,000.

(l)Required sales in pesos if the company wants to earn an operating income of P60,000.

(m)Assuming that the tax rate is 30%, the required sales in units if the company projects income after tax of P70,000.

(n)Assuming that the tax rate is 30%, the required sales in pesos if the company projects income after tax of P70,000.

(o)The profit ratio for the year ended December 31, 2020.