Problem 3Peanut Company produced sales of 240 units, the company projected profit is P1,800:SalesLess: VCCMLess: FCProfitRequired:What would profit be if:1. Sales in units increases by 22.50%2. FC decreases by P4003. VC per unit decreases by 7.5%35,000.0022,500.0012,500.0011,000.001,500.00

MARGINAL COSTING INCOME STATEMENT Marginal Costing Income Statement is One of the Important Cost…

Answered: Problem 3 Peanut Company produced sales…

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter6: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 4BE

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PROBLEM 2. Outlast Company's projected profit for the coming year follows: Per Unit Total P200,000 (120,000) 80,000 (64,000) P 16,000 Sales P20 Less: Variable costs (12) Contribution margin Less Fixed expenses P 8 Income Requirements: 1. Compute the breakeven point in units. 2. How many units must be sold to earn a profit of P30,000? 3. Compute the additional profit that Outlast would eari sales were P25,000 more than expected.
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Question 2 Style photo sells only one product. The statement of comprehensive income for 2021 is provided below: Sales 60,000 Less variable expenses -30,000 Contribution margin 30,000 Less fixed expenses -22,500 Net income 7,500 Required: Calculate with workings: The contribution margin ratio in percentage. Three breakeven point in total sales ringgits. The sales in RM if the company wants to achieve RM40,000 in net income.
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Question 2. Menlo Company manufactures and sells a single product. The company's sales and expenses for the last quarter follow: Salos Less variable expenses Contribution margin Less Exed expenses Profit anscribed Text Total £450,000 180,000 270,000 216,000 54,000 4. 5. C Por unit £30 12 £18 Required 1. What is the quarterly break-even point in units sold and in sales pounds? 2. Without resorting to computations, what is the total contribution margin at the break-even point? 3. How many units would have to be sold each quarter to earn a target profit of £90,000? Use the unit contribution nethod. Verify your answer by preparing a contribution profit and loss account at the target level of sales. Refer to the original data. Compute the company's margin of safety as a percentage. What is the company's CM ratio? If sales increase by £50,000 per quarter and there is no change in fixed expenses, by how much would you expect quarterly profit to increase? (Do not prepare a profit and loss…

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