Question: a. Hess Inc. sells a single product with a contribution margin of P12 per unit and fixed costs of P74,400 and sales for the current


a. Hess Inc. sells a single product with a contribution margin of P12 per unit and fixed

costs of P74,400 and sales for the current year of P100,000. How much is the Hess

breakeven point?

b. Hartley Inc. has one product with a selling price per unit of P200, the unit variable cost is

P75, and the total monthly fixed costs are P300,000. How much is the Hartleys

contribution margin ratio?

c. Forms Inc. wants to sell a sufficient quantity of products to earn a profit of P40,000. If the

unit sales price is P10, unit variable cost is P8, and total fixed costs are P80,000, how

many units must be sold to earn the target profit?

d. How much peso sales are required to earn a target income of P80,000 if total fixed costs

are P100,000 and the contribution margin ratio is 40%?

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