Sunshine Inc., sells a single product. The company's most recent income statement is given below: Sales (4,000

Fantastic news! We've Found the answer you've been seeking!

Question:

Sunshine Inc., sells a single product. The company's most recent income statement is given below:

Sales (4,000 units) P120,000

Less: Flexible expenses 68,000

Contribution margin P52,000

Less: Capacity-related expenses 40,000

Net income P12,000

Determine the following:

a. The contribution margin per unit is P__________.

b. If sales are doubled to P240,000, total flexible (variable) costs will equal to P__________.

c. If sales are doubled to P240,000, total capacity-related (fixed) costs will equal to

P__________.

d. If 10 more units are sold, profits will increase by P___________.

e. Compute how many units must be sold to breakeven. _________________.

f. Compute how many units must be sold to achieve a profit of P20,000 __________.

Posted Date: May 14, 2024 09:22 AM

See More Questions

An assembly line is to operate eight hours per day with a desired output of 240 units per day. The following table contains information on this products task times and precedence relationships: a....
Bryant Company's budgeted prices for direct materials, direct manufacturing labor, and direct marketing (distribution) labor per attach case are $43, $6, and $13, respectively. The president is...
Stairway Company sells a single product. The company's most recent income statement is given below: Sales (5,000 units) 200,000 Less: Variable expenses 120,000 Contribution margin 80,000 Less Fixed...
i don?t understand why in a), NaOCH3 is strong base and strong nucleophile. In d) CH3COONa is weak base and weak nucleophile. In e) NaSCH2CH3 is weak base and strong nucleophile. Is there any trick...
Can harmonic sound of any frequency be generated and heard from a violin string with a fixed tension? Explain.
a. What matters should be covered in an accountant's examination report on prospective financial statements? b. How does an examination report on a financial projection differ from one on a financial...
FastNets flexible budget variance for total costs is FastNet Systems is a start-up company that makes connectors for high-speed Internet connections. The company has budgeted variable costs of...
Hamilton Realty Companys income statement accounts at the end of its fiscal year, December 31, follow. Prepare the required closing entries. Lewis Hamilton is theowner. Account Name Commission...
La Opla has two product lines: cups and plates. Income statement data for the most recent year follow: Total Cups Plates Sales revenue $ 4 6 0 , 0 0 0 $ 3 1 0 , 0 0 0 $ 1 5 0 , 0 0 0 Variable...
A U.S. Corporation takes long position on a 3 x 6 FRA contract of $20,000,000 notional amount, based on 90-day LIBOR. The current LIBOR rates for 90 and 180 days are 5.4% and 5.9%, respectively. a)...
Find the solution of the following equations by using the fourth-order Runge-Kutta method with $\Delta t=0.1$ : a. $\dot{x}=x-1.5 e^{-0.5 t} ; x_{0}=1$ b. $\dot{x}=-t x^{2} ; x_{0}=1$.
Runge-Kutta method a. Assumes that acceleration varies linearly between $t_{i}$ and $t_{i}+\theta \Delta t ; \theta \geq 1$ b. Assumes that acceleration varies linearly between $t_{i}$ and...
What is a bivariate distribution function?
Fill in the Blank. If any parameter of a vibrating system is not known precisely, the resulting vibration is called ____________ vibration.
Finite difference method a. Assumes that acceleration varies linearly between $t_{i}$ and $t_{i}+\theta \Delta t ; \theta \geq 1$ b. Assumes that acceleration varies linearly between $t_{i}$...
What kind of bioreactor should be designed for insulin production?
Refer to the data for problem 13-36 regarding Long Beach Pharmaceutical Company. Required: Compute each division's residual income for the year under each of the following assumptions about the...
Identify the following characteristics of useful accounting information as being a component of either Relevant (R) or Reliable (L). (: Refer to Exhibit B.1.) 1. Timeliness 2. Verifiable 3....
Fill in the blanks with appropriate accounting terminology. 1. Accounting information is _________if different companies use similar accounting principles. 2. Information is______ if it would make a...
Identify the appropriate accounting principle for each description 1 through 4. 1. Callahans Castles records expenses incurred to produce revenues in the accounting period. 2. Callahans Castles...

Sunshine Inc., sells a single product. The company's most recent income statement is given below: Sales (4,000

Question:

Expert Answer:

a The contribution margin per unit is calculated by dividing the contribution margin by the number o... View the full answer

Students also viewed these accounting questions