9. Product A has a selling price of P50 per unit and variable expenses of P30per unit. If the company is past its break-even point and sales increase byP200,000, one would expect net income to increase bya. P40,000b. P80,000c. P120,000d. None of these.10. 11 sales increase from P400.000 to P450.000, and if the degree of operatingleverage is 6 (contribution margin divided by net income), one would expeetnet income to increase bya. 75%b. 67%c. 12.5%d. None of these.

Name: Product A has a selling price of P50 per unit and variable expenses of P30 per unit. If the company is past its break-even point and sales increase by P200,000, one would expect…
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Product A has a selling price of P50 per unit and variable expenses of P30 per unit. If the company is past its break-even point and sales increase by P200,000, one would expect net income to increase by а. Р40,000 b. P80,000 с. Р120,000 d. None of these.

Product A has a selling price of P50 per unit and variable expenses of P30 per unit. If the company is past its break-even point and sales increase by P200,000, one would expect net income to increase by а. Р40,000 b. P80,000 с. Р120,000 d. None of these.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

100%

9. Product A has a selling price of P50 per unit and variable expenses of P30
per unit. If the company is past its break-even point and sales increase by
P200,000, one would expect net income to increase by
a. P40,000
b. P80,000
c. P120,000
d. None of these.
10. 11 sales increase from P400.000 to P450.000, and if the degree of operating
leverage is 6 (contribution margin divided by net income), one would expeet
net income to increase by
a. 75%
b. 67%
c. 12.5%
d. None of these.

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