Xian Company had a margin of safety ratio of 20%, variable costs of 60% of sales,...

 

Transcribed Image Text:

Xian Company had a margin of safety ratio of 20%, variable costs of 60% of sales, fixed costs of P240,000, a break-even point of P600,000, and an operating income of P60,000 for the current year. How much is the current year's sales? 2. Cardo Company produces and sells two products: Coco and Martin in the ratio of 3:5. Selling prices for Coco and Martin are, respectively, P1,000 and P300; respective variable costs are P400 and P210. The company's fixed costs are P1,800,000 per year. How many units of Coco must be sold by Kidd to earn 12% on sales revenue in after tax income, assuming an income tax rate of 30%? Xian Company had a margin of safety ratio of 20%, variable costs of 60% of sales, fixed costs of P240,000, a break-even point of P600,000, and an operating income of P60,000 for the current year. How much is the current year's sales? 2. Cardo Company produces and sells two products: Coco and Martin in the ratio of 3:5. Selling prices for Coco and Martin are, respectively, P1,000 and P300; respective variable costs are P400 and P210. The company's fixed costs are P1,800,000 per year. How many units of Coco must be sold by Kidd to earn 12% on sales revenue in after tax income, assuming an income tax rate of 30%?

Answer rating: 100% (QA)

1 To calculate the current years sales for Xian Company we can use the breakeven point and the operating income The formula to find the breakeven poin... View the full answer