TRUE OR FALSE. PLS. EXPLAIN BRIEFLY.

1. Unit Variable cost is constant within the relevant range

2. Total fixed costs remain constant within the relevant range

3. Total costs are zero when outside the relevant range

4. The CVP analysis assumes that the sales mix is constant in a multiproduct setting.

5. The least-squares regression is the most accurate method in estimating the cost function

PROBLEMS

1. The contribution margin per unit is P5, while the direct fixed costs are P30,000 and the allocated fixed costs are P60,000. What is the break-even point in units?

2. Bluejeans Company has an after-tax profit of P140,000. Bluejeans has a return on sales of 20% and the tax rate is 30%. The total fixed costs of Bluejeans amounts to P100,000, what is the contribution margin ratio if the sales volume increases to 150%? (round of your answers to four decimal places, do not use percentage. Wrong: 27.28%, Right 0.2728)

Problem 3

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The following were the data obtained by the manager for the first 3 quarters for 2020: Quarter Maintenance Costs Machine Hours 50,000 1st quarter 2nd quarter 1,520,000 1,718,300 1,526,000 62,000 3rd quarter 46,000 How much is the expected maintenance costs for November 2020, if the expected machine hours is 33,000