5. The following information pertains to Nickos Company: Maximum productive capacity Normal capacity Standard variable manufacturing...

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5. The following information pertains to Nickos Company: Maximum productive capacity Normal capacity Standard variable manufacturing cost per unit Fixed factory overhead Variable selling expenses per unit Fixed selling expenses Unit sales price 24,000 units per year 20,000 units P10 P40,000 P4 P30,000 P20 2013 operating results: Sales Production Net unfavorable variance for standard variable manufacturing cost REQUIRED: 1) Income under both costing methods 2) Break even point 3) Margin of safety for 2013 4) Required sales to earn after tax profit of P140,000 (Tax rate is 30%) 5) Required sales in pesos to earn profit of 10% of sales 19,000 units 19,200 units P10,000 5. The following information pertains to Nickos Company: Maximum productive capacity Normal capacity Standard variable manufacturing cost per unit Fixed factory overhead Variable selling expenses per unit Fixed selling expenses Unit sales price 24,000 units per year 20,000 units P10 P40,000 P4 P30,000 P20 2013 operating results: Sales Production Net unfavorable variance for standard variable manufacturing cost REQUIRED: 1) Income under both costing methods 2) Break even point 3) Margin of safety for 2013 4) Required sales to earn after tax profit of P140,000 (Tax rate is 30%) 5) Required sales in pesos to earn profit of 10% of sales 19,000 units 19,200 units P10,000

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Given 1 Maximum productive capacity 24000 unitsyear 2 Normal capacity 20000 unitsyear 3 Standard variable manufacturing cost per unit P10 4 Fixed fact... View the full answer