Kulas Company's projected profit for the coming year is as follows: Per Unit Total P2,000,000 P200...
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Kulas Company's projected profit for the coming year is as follows: Per Unit Total P2,000,000 P200 1,200,000 120 800,000 P 80 Required: Sales Total variable cost Contribution margin Total fixed costs Operating income 640,000 P 160,000 1. Compute the variable cost ratio. 2. Compute the contribution margin ratio. 3. Compute the break-even point in peso amount. 4. How many units must be sold to earn a profit of P300,000. 5. Using the contribution margin ratio computed in no. 2 above, compute the additional profit that Kulas would earn if sales were P250,000 more than expected. Kulas Company's projected profit for the coming year is as follows: Per Unit Total P2,000,000 P200 1,200,000 120 800,000 P 80 Required: Sales Total variable cost Contribution margin Total fixed costs Operating income 640,000 P 160,000 1. Compute the variable cost ratio. 2. Compute the contribution margin ratio. 3. Compute the break-even point in peso amount. 4. How many units must be sold to earn a profit of P300,000. 5. Using the contribution margin ratio computed in no. 2 above, compute the additional profit that Kulas would earn if sales were P250,000 more than expected.
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To answer the questions lets go step by step 1 Compute the variable cost ratio Variable Cost Ratio T... View the full answer
Related Book For
Managerial Accounting
ISBN: 9780073526706
12th Edition
Authors: Ray H. Garrison, Eric W. Noreen, Peter C. Brewer
Posted Date:
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