Solution-Compute how many units would have to be sold each

Compute how many units would have to be sold each month

Assignment Help Cost Accounting

Reference no: EM132620450

Victoria Company sells a single product. The company's sales and expenses for a recent month follow:

Total Per Unit

Sales P600,000 P40

Less: variable expenses 420,000 28

Contribution margin P180,000 P12

Fixed expense 150,000

Net operating income P 30,000

Required:

Question 1. What is the monthly break-even point in units sold and in sales pesos?

Question 2. Without resorting to computations, what is the total contribution margin at the break-even point?

Question 3. How many units would have to be sold each month to earn a minimum target profit of P18,000? Use the contribution method. Verify your answer by preparing a contribution income statement at the target level of sales.

Question 4. Refer to the original data. Compute the company's margin of safety in both peso and percentage terms.

Question 5. What is the company's CM ratio?

Question 6. If monthly sales increase by P80,000 and there is no change in fixed expenses, by how much would you expect monthly net operating income to increase?

Reference no: EM132620450

Questions Cloud

Evaluate causes and effects of inflation : Evaluate causes and effects of Inflation. Discuss Fisher's Effect.

How is the quantity and new goods bias of cpi influence : How is the quantity and new goods bias of CPI influence the level of living/ cost of living/ growth of living? Under what situations will CPI overstates and und

Determine cost per unit using marginal costing : Assume closing stocks at the end of the previous period were nil. Using both absorption and marginal costing determine Cost per unit

How would each of the following affect the demand for money : Debit cards allow an individual to transfer funds directly in a checkable account to a merchant without writing a check. How is this different

Compute how many units would have to be sold each month : Determine How many units would have to be sold each month to earn a minimum target profit of P18,000? Use the contribution method.

Effects of increased investment spending : What were the effects of increased investment spending or increased savings in the economy of your response above?

Explain the effects of a reduction in the mark-up : With reference to wage-setting curve and price-setting curve (do not draw the curves), explain the effects of a reduction in the mark-up

Explain two effects of an adverse technological shock : Using the real business cycle theory, explain two effects of an adverse technological shock on the labor market and on the output market.

Find maintenance business for the summer : You are running a small yard maintenance business for the summer. What do you expect to happen to the number of yards you can maintain

User Account

All Pages

Compute how many units would have to be sold each month

Reference no: EM132620450

Reference no: EM132620450

Questions Cloud

Reviews

Write a Review

Cost Accounting Questions & Answers

Cost accounting assignment

Prepare the journal entries

Advise as to the liability of all the parties

Prepare revenues budget

Effect of exchange rate changes on cash and cash

Corporate governance

Cost-benefit analysis

Non-annual interest rates and annuities

Job costing in service organizations

Accounting for bad debt expense

Accounting and partnership problems

Development of relevant cash flows

Assured A++ Grade

Academics

Major Subjects

Majors

Get In Touch

TERMS & POLICIES

HELP & SUPPORT