Question: ACCOUNTING Problems Problem 1 (Computing and Using the CM Ratio) Last month when Fiesta, Inc., sold 50,000 units, total sales were P200,000, total variable expenses

ACCOUNTING

Problems Problem 1 (Computing and Using the CM Ratio) Last month when Fiesta, Inc., sold 50,000 units, total sales were P200,000, total variable expenses were P120,000, and fixed expenses were P65,000. Required: 1. What is the company's contribution margin (CM) ratio? 2. Estimate the change in the company's net operating income if it were to increase its total sales by P1,000. Problem 2 (Compute the Break-even Point) Mario Company distributes a single product, a woven basket whose selling price is P15 and whose variable expense is P12 per unit. The company's monthly fixed expense is P4,200. Required: 1. Solve for the company's break-even point in unit sales using the equation method

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!

complete solution Problems Problem 1 (Computing and Using the CM Ratio) Last month when Fiesta, Inc., sold 50,000 units, total sales were P200,000, total variable expenses were P120,000, and fixed...

please explain in detail. thank you! 1. Computing and using the CM Ratio. Last month when Rodgers, Inc. sold 90,000 units, total sales wer $450,000, total variable expenses were $270,000, and fixed...

BRIEF EXERCISE 8-2 Computing and Using the CM Ratio [LO1-CC2,3] Last year , when Beaty Inc. sold 40,000 units , total sales were $ 200,000 , variable expenses were 70 % of sales revenue , and total...

Last month when Holiday Creations, Incorporated, sold 50,000 units, total sales were $200,000, total variable expenses were $120,000, and fixed expenses were $65,000. Required: 1. What is the...

Last month when Holiday Creations, Inc., sold 38,000 units, total sales were $306,000, total variable expenses were $220,320, and fixed expenses were $36,800. Required: 1. What is the companys...

Whirly Corporation's contribution format income statement for the most recent month is shown below: Required: (Consider each case independently): 1. What would be the revised net operating income per...

Last month when Holiday Creations, Inc., sold 39,000 units, total sales were $314,000, total variable expenses were $235,500, and fixed expenses were $38,100. Exercise 5-4 Computing and Using the CM...

Last month when Holiday Creations, Incorporated, sold 40,000 units, total sales were $160,000, total variable expenses were $112,000, and fixed expenses were $35,800. Exercise 5-4 (Algo) Computing...

question 1. Last month, when Holiday Creations, Inc. sold 50,000 units, total sales were $200,000, total variable expenses were $120,000, and total fixed expenses were $65,000. Questions- What is the...

please help to answer all parts from both problems. Last month when Holiday Creations, Inc., sold 37,000 units, total sales were $148,000, total variable expenses were $113,960, and fixed expenses...

Explain the difference between return on assets and return on equity. Which measure is a more useful measure of the performance of an entity? Explain.

Clordia Patterson-Nathanial handles all accounts payable for her company. She has a bill for $730 and plans to make a partial payment of $400 within the discount period. If the terms of the...

Preventing VCEs from acting as both custodians and market exchange matchmakers would create a more q , environment for investors.

4. The income statement for E.C. Builders (ECB) is shown below. Given its marginal corporate tax rate of 35%, what is the amount of the interest tax shield for ECB in years 2010 through 2013?...

Prevosti Farms and Sugarhouse pays its employees according to their job classification. The following employees make up Sugarhouse's staff: Employee Number Name and Address Payroll information...

Assume that you are planning to purchase a 55-inch LED, LCD flat-screen television. In groups of three or four, determine the lowest cost for the television, considering the available alternatives...

Steve Reese is a well-known interior designer in Fort Worth, Texas. He wants to start his own business and convinces Rob ODonnell, a local merchant, to contribute the capital to form a partnership....

Matt and Meg Comer are married and file a joint tax return. They do not have any children. Matt works as a history professor at a local university and earns a salary of $67,800. Meg works part time...

Bob Carlton's golf camp estimates the workforce requirements for its services over the next two years in the accompanying table. Click the icon to view the workforce requirements. Assume that Carlton...

Do not pay him, wait until I come

Do not get married, wait until I come, etc.

Do not come to the conclusion too quickly