Sales (30,000 units) Variable costs Contribution Margin Fixed Manufacturing Costs Operating Income Interest Earnings before Taxes Taxes (30 %) Net Income P150,000 100.800 P 49,200 24.000 P 25,200 18.000 P 7,200 2.169 5.040 Shares Outstanding 600 shares The degree of Financial leverage (DFL) is is (1 Point) 3.50x 1.95% Sales (30,000 units) Variable costs Contribution Margin Fixed Manufacturing Costs Operating Income Interest Earnings before Taxes Taxes (30%) Net Income P150,000 109.800 P 49,200 24.000 P 25,200 18.000 P 7,200 2. 160 5.040 Shares Outstanding 300 shares The degree of Combined Leverage (DCL) is (1 Point) 545x The yearly break even point in total sales for the sales mix expected is (1 Point) Redwood Furniture Company produces two kinds of chairs: an oak model and a chestnut The oak model sells for P60 and the chestnut wood model sells for P100. The variable expe follows: Chestnut Oak P30 P35 Variable production costs per unit Variable selling expenses per unit P6 P5 Expected sales in units next year are: 5,000 oak chairs and 1,000 chestnut chairs. Fixed ex budgeted at P135,000 per year. P300.000 P485.000 P270,000 P500.000 11 Given the following income statement for OR Company for 2004: Sales (30,000 units) P600,000 Less Operating Expenses: Variable P390.000 Fixed 140.000 Net Income 2.70.000 The company's degree of operating leverage is (1 Point) 3 4.28 O2 8.57 Cyclical demand for the firm's products, 16 The break even point for 20x4 is (1 Point) Given the following income statement for OR Company for 2014 Sales (30,000 units P500.000 Less Operating Expenses Variable 390 90 Fored 140.000 Net Income P400,000 17,500 units 26,600 units P460,000 27 Sales (30,000 units) Variable costs Contribution Margin Fixed Manufacturing Costs Operating Income Interest Earnings before Taxes Taxes (30 %) Net Income P150,000 100,800 P 49,200 24.000 P 25,200 18.000 P 7,200 2.160 5.040 Shares Outstanding 600 shares The degree of operating leverage (DOL) is 9 (1 Point) 3.50x 1.58% 1.95% 140% 30 The company's overall contribution margin ratio for the sales mix expected is (1 Point) Redwood Furniture Company produces two kinds of chairs: an oak model and a chestnut The oak model sells for P60 and the chestnut wood model sells for P100. The variable expe follows: Oak Chestnut P30 P35 Variable production costs per unit Variable selling expenses per unit P6 P5 Expected sales in units next year are: 5,000 oak chairs and 1,000 chestnut chairs. Faed ex budgeted at P135,000 per year. 50% 4596 w 60% 4096 32 This firm's break even point is (1 Point) Sales (30,000 units) Variable costs Contribution Margin Fixed Manufacturing Costs Operating Income Interest Earnings before Taxes Taxes (30 % Net Income P150,000 100.800 P 49,200 24.000 P 25,200 18.000 P 7,200 2.160 5.040 Shares Outstanding 600 shares 18,000 units 4,800 units 7. 142 units 14,634 units 35 Given the following income statement for On Company for 2014 Sales (30,000 units POC.000 Less Operating Expenses Variable 230.000 Red 120.00 Neirome The company's margin of safety (round off to nearest whole percentis (1 Point) 6796 50% 12% 33%