Solution-Determine the number of units for each product

Determine the number of units for each product

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Question - The Punch bowl Corp. produces and sells two products, P and B. In prior year, Punch bowl has sold 3 units of product P for every unit of product B. Selected data on these products show the following:

	P	B
Unit selling price	P10.00	P15.00
Unit variable cost	7.00	9.00
Total fixed cost	P600,000	P600,000

Required -

a. Determine the number of units for each product that must be sold in order to recover the total fixed cost in prior year.

b. Determine the number of units for each product that must be sold in the coming year in order to break even.

c. Determine the number of units for each product that must be sold in the coming year in order to realize a profit of P500,000 before tax.

d. Determine the total contribution margin in the coming year.

Reference no: EM132986672

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Determine the number of units for each product

Reference no: EM132986672

Reference no: EM132986672

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