The Abigail Company produces and sell two products, X and Y. Cost and revenue data on...

Transcribed Image Text:

The Abigail Company produces and sell two products, X and Y. Cost and revenue data on the products follow: Product X Product Y Selling price per unit P20 P24 Variable cost per unit 12 6 P18 Contribution margin per unit P8 In the most recent month, the company sold 400 units of Product X and 800 units of Product Y. Fixed expenses are P10,000 per month. REQUIRED: 1. Prepare a comparative income statement for both products on the most recent monthly projections. 2. Compute the company's overall monthly break-even point in peso sales. 3. If the company continues to sell 1, 200 units in total each month, but the sales mix shifts so that an equal number of units of each product is being sold, would you expect monthly net income to rise or fall? Explain. Prepare another comparative income statement to answer this. 4. Refer to no. 3 above. If the sales mix shifts as explained, would you expect the company's break-even point to rise or fall? Explain. The Abigail Company produces and sell two products, X and Y. Cost and revenue data on the products follow: Product X Product Y Selling price per unit P20 P24 Variable cost per unit 12 6 P18 Contribution margin per unit P8 In the most recent month, the company sold 400 units of Product X and 800 units of Product Y. Fixed expenses are P10,000 per month. REQUIRED: 1. Prepare a comparative income statement for both products on the most recent monthly projections. 2. Compute the company's overall monthly break-even point in peso sales. 3. If the company continues to sell 1, 200 units in total each month, but the sales mix shifts so that an equal number of units of each product is being sold, would you expect monthly net income to rise or fall? Explain. Prepare another comparative income statement to answer this. 4. Refer to no. 3 above. If the sales mix shifts as explained, would you expect the company's break-even point to rise or fall? Explain.