Scribd
Upload
69 views1 page

ms1 6

The document contains 5 multi-part accounting and finance word problems. The problems involve calculating break-even points, projected profits, units needed to be sold to reach a target profit, sales increases needed to reach a target operating income, and how much fixed costs can increase while maintaining a gross margin percentage.

Uploaded by

ALMA MORENA
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
69 views1 page

ms1 6

The document contains 5 multi-part accounting and finance word problems. The problems involve calculating break-even points, projected profits, units needed to be sold to reach a target profit, sales increases needed to reach a target operating income, and how much fixed costs can increase while maintaining a gross margin percentage.

Uploaded by

ALMA MORENA
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
You are on page 1/ 1

28. At a break-even point of 5,000 units sold, variable expenses were P10,000 and fixed expenses were P50,000.

The
profit from the 5,001st unit would be?

29. Nang Ngumiti Ang Langit Company has fixed costs of P100,000 and breakeven sales of P800,000. Based on this
relationship, what is its projected profit at P1,200,000 sales?

30. In 2006 Sandugo Company had a net loss of P8,000. The company sells one product with a selling price of P80 and a
variable cost per unit of P60. In 2007, the company would like to earn a before-tax profit of P40,000. How many additional
units must the company sell in 2007 than it sold in 2006? Assume that the tax rate is 40 percent.

31. Kadenang Tanso Company has sales of P400,000 with variable costs of P300,000, fixed costs of P120,000, and an
operating loss of P20,000. How much increase in sales would Bulusan need to make in order to achieve a target
operating income of 10% of sales?

32. The following data apply to Showtime Corporation for the year 2006:
Total variable cost per unit P3.50
Contribution margin/sales 30%
Breakeven sales (present volume) P1,000,000

Showtime wants to sell an additional 50,000 units at the same selling price and contribution margin per unit. By how much
can fixed costs increase to generate a gross margin equal to 10% of the sales value of the additional 50,000 units to be
sold?

You might also like