A.Use the following information to answer the six questions below.

Variable Manufacturing Cost Per Unit20

Variable selling cost per unit25

Selling Price per unit100

Fixed Manufacturing cost per unit 30

Fixed selling cost per unit 10

Expected production and sales1000 units

Questions:

1.Contribution Margin per unit is?

2.The Contribution Margin ratio is?

3.Break-even point for the product is?

4.If the firm wants to earn P70,000 in pre-tax profit, sales revenue must be equal to?

5.If the firm wants to earn P70,000 in pre-tax profit, contribution margin must equal to?

6.If the tax rate is 40 percent how many units must be sold to earn an after tax profit of P60,000?

B.The following are taken from Green Company's income statement:

Net Income P30,000

Fixed Costs 90,000

Sales 200,000

Contribution Margin Ratio 60%

1.The company's margin of safety amount is?

2.The margin of safety in percentage form is?