PROBLEM 8. The Color Company manufactures and sells two products. The selling prices and variable costs...

 

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PROBLEM 8. The Color Company manufactures and sells two products. The selling prices and variable costs of the products are as follows: Selling prices Variable costs Blujets Blupens P20 P40 8 24 The sales for 2021 were in the ratio of 3 Blujets to 1 Blupen. Sales volume for 2021 was P1 million. Fixed costs for 2020 amounted to P390,000. Requirements: 1. Compute the number of units sold in 2021 for each product. 2. Compute the breakeven sales in pesos and in units. 3. Compute the composite breakeven for the company. 4. If the sales mix was to change to 2 units of blujets to 1 unit of Blupen, would this have any effect on the breakeven sales? If so, what would be the new breakeven sales? 5. Assuming that the sales volume would remain at P1 million, what net income would be generated using the sales mix in number (4) above? 6. What sales revenue would be required if the firm wishes to generate a net income of P328,900 if the original mix of 3:1 prevailed? PROBLEM 9. Basic Foods expected to sell 30,000 of its fishcharon at P300 each. It actually sold 29,000 at P298. Variable cost per pack is P140. Determine the sales price variance and sales volume variance. PROBLEM 10 The controller of Palma Company is examining the following budgeted and actual income statements for its principal product for 2021. All amounts are in thousands of pesos. Sales Variable cost Contribution margin Budget Actual P4,800.0 P4,967.2 1,668.0 1,780.8 P3,120.0 P3,186.4 The budgeted unit selling price is P8.00. Actual unit volume is 6% over budget, but the actual selling price is below budget. Per-unit variable costs are incurred as budgeted. Determine the sales price variance and sales volume variance. PROBLEM 8. The Color Company manufactures and sells two products. The selling prices and variable costs of the products are as follows: Selling prices Variable costs Blujets Blupens P20 P40 8 24 The sales for 2021 were in the ratio of 3 Blujets to 1 Blupen. Sales volume for 2021 was P1 million. Fixed costs for 2020 amounted to P390,000. Requirements: 1. Compute the number of units sold in 2021 for each product. 2. Compute the breakeven sales in pesos and in units. 3. Compute the composite breakeven for the company. 4. If the sales mix was to change to 2 units of blujets to 1 unit of Blupen, would this have any effect on the breakeven sales? If so, what would be the new breakeven sales? 5. Assuming that the sales volume would remain at P1 million, what net income would be generated using the sales mix in number (4) above? 6. What sales revenue would be required if the firm wishes to generate a net income of P328,900 if the original mix of 3:1 prevailed? PROBLEM 9. Basic Foods expected to sell 30,000 of its fishcharon at P300 each. It actually sold 29,000 at P298. Variable cost per pack is P140. Determine the sales price variance and sales volume variance. PROBLEM 10 The controller of Palma Company is examining the following budgeted and actual income statements for its principal product for 2021. All amounts are in thousands of pesos. Sales Variable cost Contribution margin Budget Actual P4,800.0 P4,967.2 1,668.0 1,780.8 P3,120.0 P3,186.4 The budgeted unit selling price is P8.00. Actual unit volume is 6% over budget, but the actual selling price is below budget. Per-unit variable costs are incurred as budgeted. Determine the sales price variance and sales volume variance.