Question: ILLUSTRATIVE PROBLEM: CVP ANALYSIS FOR A MULTI-PRODUCTS FIRM C. Lor, Inc. produces only two products, A and B. These account for 60% and 40%

ILLUSTRATIVE PROBLEM: CVP ANALYSIS FOR A MULTI-PRODUCTS FIRM C. Lor, Inc. produces

ILLUSTRATIVE PROBLEM: CVP ANALYSIS FOR A MULTI-PRODUCTS FIRM C. Lor, Inc. produces only two products, A and B. These account for 60% and 40% of the total sales pesos of Lor's respectively. 1. Variable costs as a percentage of sales pesos are 60% for A and 85% for B. Total fixed costs are P150,000. There are no other costs. Compute for the weighted contribution margin ratio. 2. Compute the break-even point in sales pesos im 3. Compute the sales pesos necessary to generate a net income of P9,000 if total fixed costs increase by 30%.

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