1. A company with P 280 000 of fixed costs has the following data: Assume three units of product A are sold for each unit of product B, how much will be the sales in pesos of product B at the break-even point? a. P 90 000 b. P 240 000 c. P 760 980 d. P 977 000 2. A retail determines it's selling price by marking up variable cost by 60%. In addition, the company uses frequent dselling price markdowns to stiimulate sales. if the mrak-downs average 10%, what is the company's contribution margin ratio? a. 10% b. 30.6% c. 65% d. 90% 3. AQ company have sales of P 500 000, variable costs of P 300 000 and pre-tax profit of P 150 000. If the company increased the sales price per unit by 10%, reduced fixed cost by 20%, and left variable costs per unit unchange, what would be the new break-even point in pesos? a. P 900 000 b. P 50 000 c. P 870 000 d. P 88 000 4. Tonykinn Comp. is contempleting marketing a new product. Fixed costs will be P 800 000 for production of 75 000 units or less and P 1 200 000 if productions exceeds 75 000 units. This ratio will increased to 50% for units in excess of 75 000. If the product is expected to sell for P 25 per unit, how many units must Tonykinn sell to break-even? a. 23 000 b. 111 000 c. 98 000 d. 876 000 5. Last year, the contribution margin ratio of La Mesa Comp. was 30%. This year, fixed cost are expected to be P 120 000, the same as last yaer, and sales are forecasted at P 550 000, a 10% increases over last year. For the company to increased income by P 15 000 in the coming year the contribution margin ratio must be: a. 9% b. 30% c. 87% d. 65.7%
