9. GAB's marketing department has predicted that the demand for the company's product will exceed its...

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9. GAB's marketing department has predicted that the demand for the company's product will exceed its 20,000 units that it can produce and sell. Additional manufacturing space can be rented from another company at a fixed cost of P40,000 per month with a variable cost totaling to P12 per unit. The company's selling price is P18 per unit. REQUIREMENTS: (a) What is the breakeven point (units) per month of the product? (b) How many units shall be sold per month in order for the company to earn P30,000 before-tax income? ZHAIRA CORP. sells its product for P200 per unit. Variable cost per unit is P140, and monthly fixed costs are P250,000. The company is considering an alternative involving reduction of variable cost per unit by P20 per unit and increase monthly fixed cost to P250,000. REQUIREMENTS: (a) What is the breakeven point (units) under each of the alternatives? (b) Determine the indifference point of the two alternatives. 10. GLYDEL COMPANY is selling two types of its best-selling and durable door locks, the manual and automatic. GLYDEL sells three units of manual for every two units of automatic. The company has a total fixed costs P1,900,000. Additional information related to the two products follows: Selling price Variable cost per unit Manual P420 120 P300 Automatic P650 150 P500 Unit contribution margin The company is subject to a 30% tax rate. REQUIREMENTS: (a) What is the breakeven point in units for each product? (b) What are the breakeven sales for each product? (c) How many units of each product shall be sold in order for the company to earn an after-tax income of P532,000. (d) How many units of each product shall be sold in order for the company to earn a 10% before-tax return on sales. (e) Compute the composite breakeven point. 9. GAB's marketing department has predicted that the demand for the company's product will exceed its 20,000 units that it can produce and sell. Additional manufacturing space can be rented from another company at a fixed cost of P40,000 per month with a variable cost totaling to P12 per unit. The company's selling price is P18 per unit. REQUIREMENTS: (a) What is the breakeven point (units) per month of the product? (b) How many units shall be sold per month in order for the company to earn P30,000 before-tax income? ZHAIRA CORP. sells its product for P200 per unit. Variable cost per unit is P140, and monthly fixed costs are P250,000. The company is considering an alternative involving reduction of variable cost per unit by P20 per unit and increase monthly fixed cost to P250,000. REQUIREMENTS: (a) What is the breakeven point (units) under each of the alternatives? (b) Determine the indifference point of the two alternatives. 10. GLYDEL COMPANY is selling two types of its best-selling and durable door locks, the manual and automatic. GLYDEL sells three units of manual for every two units of automatic. The company has a total fixed costs P1,900,000. Additional information related to the two products follows: Selling price Variable cost per unit Manual P420 120 P300 Automatic P650 150 P500 Unit contribution margin The company is subject to a 30% tax rate. REQUIREMENTS: (a) What is the breakeven point in units for each product? (b) What are the breakeven sales for each product? (c) How many units of each product shall be sold in order for the company to earn an after-tax income of P532,000. (d) How many units of each product shall be sold in order for the company to earn a 10% before-tax return on sales. (e) Compute the composite breakeven point.