Beruflich Dokumente
Kultur Dokumente
COST-VOLU
ME-PROF|T
AilALYSfS
is usbful for profit planning by way of a systematic analysis of the interrelationship among
costs, volume (unit sales) and proftt.
CVP analysis -
FACTORS
If there is an increase in ...
2. UNIT VARIABLECOST
NOTE:tn mirltl-proO,
(CM) - is the difference between sales and variable cost. It ts otherwise knourn
aslnarginq! income, profit contributioO, contribution b fix& cost or incremenbl
coiEFiffiffi
.
CM Ratio = CM + Sales = Unit CM + Unit Selling Price
r CMRatio=ACM+ASales
NOTE:The sign'A'is uged to mean change or difference.
Brcak'Evcn Polnt (Aep) - a level of activity, in ufrits (break-even votume) or in pesos (brcak-even
sdles), at which total rvenues equal total costs. At the break-even point, thcrt
ilrr$rr
of.llS:f,y,,-
BEP peos*tcs
Fixed Costs
PrvPblA
()t
r-tstHfrrt Lrt
_JotELy Ratho
Maryin
of Safety
r\s|'rrt, = Margin
r!|argfit
of Safety
T Sales
+
Jatlg[y
>AlgS
-
haq-
vF fnCfficrc*oc poilt - the ftvl of volurneat whiclr two alterndives being analyzedwould vl"ia
'6mount of total costs or Profits.
"qr",
Attern*tve A
AlternativeB
. (llnit 9!! x Q) - FixedCoct sr
{Unit CM x e) - FixedCost
o Fixed Cost +
cost + (unit VCx
?r,'$".+
ffirE: a - nurn-nei
$alec trltx *
llaaraa
E Y E .v!
af
v.
6pffiO
*"
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- ?h Retaeru
Scnoda{ Ace.aa'ta*ert
[ils-02
ME-PROFITANALYSIS
COST"VOLU
AII{ALYSIS
: COST-VOLUME-PRQFIT
EXERCISES
1. Gentleman Company manufacture5 and sells a singfe prcduct. The company's salei and expenses for a
recent month follows:
P @O,OO0
Sales(15,000 units)
450,000
Less: Variable Costs
P 150,000
Contribution Margin
145.000
[ess: Fixed Costs
Profit
BrugO
REQUIRED:
1. Determinethe followinq:
LtN/,
2^1
?-f fo1
trmwt'fsooo
WotofUcoo
{ry-to)-Qo
2. What is the rnonthly break-even point in units sold and in sales pesos?
0u?r:l$nd[
2. RockCompanysells its gbLIgJ,"&%irtlT\",
mo-nE)
amountedto P 100,000F-er
U gD
* REQUIRJED:
Sales
Costs
tess: Vatr,ifiFle
Contributionf'largin
Lss: FixGdCosts
Profit (Loss)
twqtw'
'
RequircqrotZ
cost decreasesby F rs,oo0 under the proposal(P 40,000 ) P 25,000).
ffiffi.-tud
r' Unlt idfibe,dst increassby P 1-6O(5% of P 32)
ff i= ,
3.*ryW'
15,000= 1.6X
. X = J , l? B u ilt t r
lnft Uu=f
o:f**
/"**.n
margih + Sate$
Where:ContributioirntarganratiQ- Contrib-ution
Marginof safety ratio = t{arSlinof safiety+ Sates
*^ /
f" | "
Net profit ratiO= Pfoftt + Sates
LWf
.-\__the profit
salggbreP 528,0007
4. Catl-Me-Maybe
Company'sftreat]ffin
E\--' The variable.ort l'"ti6Ooogrin,,u
ratio is 8olo.
rl k q
arn rcr.bo
!-+ lI
frE
rr.r
t.
r ,
^lttf'ro
l{
ft'
theronowins:
RE1nTRED;
Determj4e
fr
^-j]'lF;:ifltiff-fi-"-""''';ll--',
i. i""%f"l4*; fto,orr,.,
i
s. Marsinof SafetyRatio?'1.
'
,C/*r
I
Cts- Bas)
Page2 of 3 Pages
7l
| x - zttt;r -''l8I
.ltt'- Zfl?dl)
/; (1sc tsD
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MS-02
COST-VOLUMEJPROFIT ANALYSIS
5. MahjongCompany producesand sells two
budget:
1;,I
Sales in Units
sales
VariableCosts
1.050.00
, 112.50 .. , IJOZ5Q
Marsin'
:,i?T'3::,iJ fiw"r' G:&*''"3;:33
Profit
F=UlIJg
*'of:ff.Imany
/1.\
Ld\
W/vxrnt-- 1ow
-, - ,\
units
or chairsrilSf;*S^,f.ne*t
montttobreak-eve
n't /4o,^
?*1-Y*t
-ffi
SOLUTION
9UIDE(item no.-5)
(CM)perunit
:iontvtargin
SalesMix (4:1 ) 8096:2006)
weighted
Averase
CMperunit:
6. Ms. Rita has recentlyopenedtfre@itness
ffiE.-ffi
8006
-t,
f.
Gym prffirr"O
20oA
'
.
.t-
D\\'
1 S.i
The results for the gym:s first year of operations are presented'asfdllowg:
Ssles
Variable Costs
,.d
= -
tli
tl,
fF
"
M5. Rita is unhappy about the results ot his gym's fi.rst year of operatlons. She observed that despite the
very high contribution margin, profit was still low becasse of the very high fixed costs. She conchrdes ttrt
an increase in sales would not yield a satifactory ItnrEE
incrxc rrr
in pto{tt.
l'rL'I*'
r rjr
"alrrroLr('ry
9;{
|n'REo,rrRGo,
1.- eipfain to Ms. Rita that what he feets is not right by computihg the operating t&8."ge factor. Wlt5
Z. If sales increase Fy 10Yo,then how many percent wuld profit increas, cetens paribus?
(Determine the percentage A by using the operating lwergge fxtor.)
9.f,
(Adapted: llanagerlat Accouging by Garrison, et.al.)
t
,/
WRAP-UPEXERCISES(TRUEoR FALSETMULfIP{-E-CFOfCE}
At the break-eyen point, total conffiution margin is
c. Equal to total costs
t g. Zelro
bn-'o)
ratbreduce,
$; ff:ii$"T'il;il'"r?;'Shpco^i,r^
#/^":re**91"':"Tl3#ffi'nfr::n,"
^?#
I
ri $r" t"iEte
incrcases, then the break-even point also increases.
W
'4.
*
ReSAReview School,Ing"'.;_a 7359807| 7343989r 09104391320lO9239I24t2l / 09164383834h( resareview@hotmail.com
A. Lee
MANAGEMENT SERVICES
Quizzer:M902
i'E-PROF
ff ANALYSIS
COST.VOLU
test banks
Sources:CM /ClA/RPCPA/AICPAA/arious
1. Allelseconstant,if the selling@arrs,
a. Totalvariablecostswill be lowerthan expected
b. Contributbnmarginpercentagewlll be higherthan expected
marginwill be higherthanexpected
c. Totaldontribution
marginwill be lpwerthanexpected
Pdr.unitcontribution
-{'
of a contributionincomestatement?
2 Whichof the followingis a characteristic
combinedas one line
expenses'are
variaH
Fixed
and
B
?
from variableexpensec
listed
are
separately
fixeAexpenses
@
c. Fixedand,vailate firanuf*turing costs are combinedanione line item,but filed operating
,
expensesareshorvnsepardely frorn variabb oprali?gexpenseg
d. Fixed and vari*h operating expenses are cqrrlliined as one line ibm, but fixed
are shownseparatelyftom variablemanufrcluringexpenses
manufacturingexpefises
most?
d. o.20
b. 0.s
Abst Companypbns b martet a rw product. Bryqd on its marketstudies,Abet estimatesthatjlcan
t_o_99*10%)of
unit. VariableosJ is e-stiryated
sn5,500unitsin 2013. Ttrc @!g
- --_ \--/
what is-thebreak-evenponta
Fixedoost bffim-aied to Erf@
ihe sefmg@.
-
' 9c
5,5O0ur*ts
a. 3,73Oul$
cmlu,I.L
d. 7,SO0ur*ts
-V 5,000units
a'/i r , buc0qa;k
7. ln ptanningits operationsfor 2013 basedon a sales fsreca$ of P 6,000,000,Anne, Inc. preparedthe
followingestimabddata:
_@
Vari#llc
P1,s0,0m
1,400,000
600,000
Directmaterials .
Directlabor
Factoryoverhead
expenses
Administrative
'
60.000
ffioa't
140.000
hYl''l
fr{u.r,}s
F. P 4,000,000
d. P 5,300,000
P agelof8pages
kL'rlooo
hq.w@)
900,000
B3gg$0g P-lgoo.ooo
a. P 2;250,000
b. P 3,500,000
Fixed
,d
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j.r,rt
MSQ-02
ANALYSiS
E-PROFIT
COST-VOLUM
g. to.r *" periodjust ended,t"[:f".il:"ny
resultsin percentages:
generatedthe fonowing/ooperating
Costof sales:
Variable
50o/o
dnR
\o'l't
sales?
Totalsalesamountedto P 3 million.Howmuchwas the break-even
P
2,850,000
c.
a. P 1,875,000
d. P 3,750,000
P2,soo,fi)o
zX
ftc
,ffi
Ffru
sas or eartgConporKi-Faffib
i 1 TtEtoc**t OreR-evan
tF. .
' lo c F
7e/
Vot
,T".,TTfry
will go up by P 60,000,the 3sb3 rccnfturo-wu*-cuen wlll also incfeaseto
"*pense
wiifroutany changein,inesetlingpriceper unit and on the varisbb expenses.
theinccase
benore
Howrxrchisthetotetfixcdexpensc
c. P 280,000
".;;;
a. p 200,000
T'
*#t*
_-P 330,000
,E p 220,000
JA^l t1l)
12. A compEnyrne*fthtros a ,nng|. produa. F*ndard oort c*a regnrdinghisffiano
and the compnnyare as follouts:
in6nnigon tor tho potluct
'
P 40
,
{o
$r*es price Pcr unit
til*
;tAY=ld
(0 /.
Ll{t[ z t- ' .,
ot|rer(&opill
t*.4,
*rc.{"ffi,"#R$TffiffiS,li,Tluc
:"lilt'+
' Fixedc_tsandexPengcs:
y'-'
:
\WffiffiSm?,**Jnc F3:?3!,1"$
40%
-
=-j*:'i1':--:
breakevenpoint is
The nurnberof rmitBtre companymust sell in the cofFir|gyear in irrder to reach its
'
/E 583,2S units
a. 388,6O0unitis
d. 972,000units
units
518,400
b.
13.The'mostliltelystr#gy to reducethe breakevenpoint,would.beto
a. lncreaie boththe fixedcost and the contributionmargin
b. Decreaseboththe ftxedcostsand the contributionmargin
Decreasethe fixedcostsand incrgasethe contributionmargin
.s
A
| t|
/lV.
I
t J,
tn"n"J.o.tl a;ao""r"*li;;;;i;ifiti"";"l1'i;
d. Increase
X"t o
t TC
of brea[evenanalysisis that
limitingthe reliability
Oneof the majorassumptions
a.Efficiency,andproductivitywil|continual|yincreaseLLsvvt!^^4|
range
oveqlgant
b. tffi-f${bble costswillremainunchanged
;. ritri ni"J
unchanged
*irlremain
@
.,.,\
( rn'w-rv ;
production
factorsvarieswithchangesin technologY
d. The costof"*t.
WH
l,frw
'o ,l,p
uf
-,
ReSA
MSQ-02
j
- ',*
ANALYSIS
cosT-volu ME-PRpFIT
X
Tt
'
pointto change?
15. Whichof the followingwouldcausethe'break-even
a. Satesincreased(Vno)
dedrasd
b. Totalproduction
c. Totalvariablecostsincreasedas a functionof higherproduction
in physicalplant
*d- Fixedcostsincreasedouringto additionalequipment
f\A
pff
ri
ItX t
.1,fi.c = .f [rY
is
16.
/
b. The cost is bothfixedand variable.
c. -Thecompanyis operatingat its break-evenpoint.
d. The companyis achievingits targetlevelofprofit.
data?
17. HowmuchwilfincAfne&hang!}ifa companymakesan advertisingcampaigngiventte fiofiowing
Cpstof adve(isingcampaign
**
(
e 25,,0^0j
..,"
.""
'
i,zx 5('l'cr"e-,
variableexpens6asad"i&nr"geofsalesB
in sales
Increase
a. .-P 200increase
P 9,800increase
P 60.000
p
15,@0increasc
c.
d. P 25,S0 incrsese
a. P 480,000
K P 720,000
c. P 3@,000
d. F 220,000
glc,,r,
1 ii I
-=-:;
.%
'/
18.Francis
Companyis planningto sell 100,000uqitsof ProductA forSAQ-.a-unit me nxea-tK
'amounted
whd uvould
thevari$le costbe?
to P48Qp,00ln orderto realizea profltdf P 200,000,
B
'
q@{i6
iiot-
-{N)
19. Yolly Companyrlsqhnningto sell200,000unitsof PtoductF. The fbd cost ie q 4m,q90 and the
variabb cost i{OOV}f the sellingprice. In order to realizea profttof P 100,000,th}lling price per
.'-r .
unitwou<ravettebrd
a. P 3.75
.d p a.zs
,133:333
#a,
1.{
esed oo a madrd
that it could i
Dabn.
recast,
ffi-etghurld
b fic rp.r"trrglltmrfr,flffiCI ot
ffio
a. P {?3,01h
,4
v&
P ?05,m
d. P 365"000
b. F' 190,000
21.
and
tftd Dahn
PJ00,0qJ|v6 rycrt in
/ttott\)o
Theff*a-aos$Cf 210,000andthevariablecost
aneytoy$Qunit.
Companyg1&Product
prie.
*otrtd$e-ttfe
amq,rnt
of sEE if *;btaeon@T,,Srp relize a profit
Vtltnt
seilir
fir
q!
sabs?
0f
>i
'an'.r
P 7ffi,F8"
,' n
'
tr\r'
eqtXimentused in the
Atice Corp. aims to eam a ASValCum on its P 500/m-iOrrestrnent'in
Y nextyear,thecost
Dnits
of
Produet
Be64
sales
of;l0O0
dh estlmated
of ProductY.
manufacture
per unitwere estimatedas.f6llo.ws:
.
Variablemanufaetlringcost
Pzs
t^.o0u>
10
I tl-Uu{
5 rooo/,,_ ,4t?
FiXi$il"j'#"1?jnffii5,*1***'
, , :--6fi
-c
p sz.so
d. P 55.00
/^&-
1v
*[l,in",
marginratio)
the conslanfcontribution
c. P 200,000
h ,f
P 400.000
d
l1 '.'- l'ir),
5"'lPr
r
*9!::
i? rt_l.
"U*
"
I'Jt c-- ltsN,'
is its projected
,1 n'*taa-rq
RreSA - ?/e R**n Sc&oat
MSQ-02 , . ,* 1,
,,_,..i
'':' I
COS'T-VOLUME.
PROFITANALYSIS
.1 -=e?T[e-qg!-variablecost
producttoretailersfor\Q.!Q$
tb " 9:*'W'u
-!4 u aselling
tVllt'
24 DetfinCompany-glg a
E@irts
wrr-iffixed sellingand '?XC
i,0O-OE-0pet,rngn!b,
cost to-i-ars'p
commissionof 10%. Fixedmanqtqc'Lurirtg
incometax rate is 3Qlo. What will be the requiredsales to i
aliministrativec,ostequals8-dffiQglh,e
1-y[ qyq rudtuo+' f.rf{.lt" */
achievean after-taxprotitot:FlE;ZOOe
*n-{'
c' 15,640units
a. i.tg,g50units
+.1
11,400
units
{ }*f " ''TeI
b. 18,750units
-{
'
25. l-lethfitectronicsCompanyis developinga I rew product,surge protectorsfor hlgh-voltageelectrical
ftnws. The cost informationfor this productis a ts follcffvs:
'
Unitco,st$
H-g--bu 't"
Directmaterials
Directlabor
also be
The'company
producl.I
effective int
this new
Horlr-m&(Isurgeprotectors(roundedto
P-ta W-Onit to increasea&r-'El[i!9em
fl4@i1{ingpese
a. 10,700
b. 12,100units
is40%.
fiX*t
lxoRd
28,300units
llP"n*'
b,
d'
'14;000000 pounds
poumts
?5,60O,0C10
:i-
\ I,"
byconsidoingonly
profitrelationshigthatarcqrrvilinearmaybc andyz.edlinasrly
1\L
-27. Cost-votumg
c- lelenantvarrabke.s\
costs
andsemi-variabte
;. Fixec1
/lft-I \ o
Relevantrafr1rcof(g{!/
costs
b. Retervant,fixed
4
for the firsttime-duriig$:"t3:
a new proiecttha!.wittbe^msrkete'C
haqdevetoped
28.Delphi'C"ompany
eatimbbs
Departrnent
ye,ar.huriough
sla{r*arketids
fiscet
9q 3i,0c9lllf,::{9^*:"y-i:5,*1"J:i
*qff
h,iT#;EH;i;iJl'il#"1;{;jiil;!*il;fi,il-r'ilt:spc'tytoplg,*ama1mYl-oJ
j.i:1"11'il;
v'r ffi
ffi*'il
i--^,TH
P*ffi tr lffil"#Jf'
-:*6$''t''w*"v"
whK'
budgettld
atry
",il-o rm
;ff];llffi.,.,
rate.
Directmateriat
Directmaleflat
-
tax
bGJsdrncome
iesugcct
Dirph,'
VariableCosts
P
rr.uu
7.00
350
-==-J-9+
P 14.50
cost
manufacturing
Totalvariable
il;;;iffi;;
overhead
Mapufacturing
,.
ao.)
( qdo
4rTJrggry_,
4g
Seuing.expenses
,aot
lg**n
fiT,
Toratv a r ia b t e c o s t
if
.
W
t)o-lj$3ntf3tyt:j
thatit willnotiIFIove-{ne
hasstipulated
managpfnent
Delphiccimpunyrs
firstyear'
year
thesser:tax-.prof,t^ig.-atteqi{-P-7irq0q.:be
unless
fiscal
afterthe*next
thenew,product
"
profitmustbj?ij!l-Tst
thisfarget
trie o*ltieffingpricetoachieve
t?,5"t\)
:
p
c. p s700
a. s4.Sb
1fiw)
, b' P $660
,{ P 39'oo
:#.
y'\''
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/./ n"s^\!\
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- 7{z Rec,dea,
Sa/4ial al 4(riuuta"rcrf
'
cosT.voLUME-pRoFIT,ANALySIS
'r
MSQ-o2
&
'*\
29. Julie Company,which is su$iect,folygfarlcometax rate, had the followihgoperatingdata for the period
just ended:
a rt
32t-,
i:1iTflJ:::,'S,",1,i:,
::.',"'
'
+)f,tw
Fixedcosts
@r
o)
w(-tuYEpOv
thecomingyear,it must
selr
wantsto earnafter-tax ffti@n
lf thecompany
"t
22,500
units
units
a. 10,300
JfgODD-7
units
d. 27,000
units
b. 21,316
+yt'-nnry
lyr{{.n'
0v
uniB of
30. DanilyrlleQ.is planningto producetwo products,A and B. Danilynis planningto sell lOO,OOd
foa.ooo e ayf'q a,Lnit and 200,000units of B at P4l! unit. Variablecost is TOohot setesbr.A and 80% of
--what mustth totalfixadcost be?
sdteH-r g. tn ordeffi6o,ooo,
P
c.
240,000
P
A
8o,ooo
-{
d. P,600,000
b. P 90,000
*'T6TJ2;-"
rne
Fixed
ccattotabe,Eqg,opoAi""rrv.
riii
e,.1""
"iileo
t@htr
ProductB. l.lowfnany units of the two products
*itt
mfi Glpryscll
z z,ooa
a. '857
b. 1,111
d. 2,459
..
twounitsof T
"l*aenil P-Tperunit
for eecll ufiit of $. Thc cffitributionmargilrsere P l*pffiit of S, P 1.5Operunitl/T,
of D. FixedcostsareP 600,000.Honrmbnyunitsof S rrouHKrissellat nd OrX-ewnpoint?_
D
S
c. 240,009units
a. .10;00U
unie
T
b
I
z
4o0,ooo
d.
units
16,ooo
units
aV
,
=lA@l0Xl
34. Thereare so manyalsumptionsinhtrer* in C\lP analrsis. t ftHt of tf followingis npt one of these
assumdfrms?
(,
',Csst
It
t
xe p,*teble f,$ are frear overthcftlevant range
a.,
and'fenrcf-rues
2\
propoftb'r$S
witstvokme
b. Variat*ee68tsfluctuate
I
D. Kris
Kris *nq@)!$og5
PrcducF s,
S, T end
and D
scfl{frreg&gibgsfor for eacfi
eacfr u"(Jt
selb Produetr
33. Kris
Kris eqrpny
Cqrpany sei,ts
ln fiG
ItoI
| " il1,
L)l,
35. A corlpanyselb two producls,X and Y. The seEs mix con$stsof a oompositeunit of two unitsof X for
(2:5). Fixedcoots are P 49,500. Tl uhil,"cp.$ribution
marginsfor X and Y are,
everyfive r*titrof
-Y
Jilt
resoeoiivafr
P25OsdP1.20.
2.5Otrd P 1.20.
respe$W$,
P
^ .4
a"{
"b
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,.-"',.",:,.'&
ME-PROFiT ANI\LYSI5
COST-VOLU
ttrl$
saresresurts
rnc hadrheforowing
37 Emproyee,
MSQ-02
rQg-Blayer. Badios
0.40
0,30
0.30
Peeosalescomponentratio
0.60
0 40
0.40
marginratio
Qgntribution
in pesoofor Employee,lnc.are:
The breakeveR,$alea
Employee,l',rc.hbi fixedcostsoi p 2,+00,000,
IlLrreF'
a . P 1 .8 M,
b. P1,8M
C'PpLqy_er Badioe
P3.6M
P 1 .8 M
P1.BM
P16M
c.
d
ry-$elg
CDplayer
Radios
P 2M
P 1 . 5M
P1.5M
P 1 . 5 3 1 . 9 1 5 P 1 , 5 3 1 , 9 1 5P 2 , 0 4 2 , 5 6 3
Themarginofsafetyis
CVPanalysis.
39. The.mrtrqglnpf
safetyisakeyconceptof
rc
maryinrate
a. . Thecontribution
margin
coritribution
margin'rand
breekeven
contribution
budgreted
b. Thedifferencabetwebn
sales
broakevert
saftssiand
budgeted
between
The
difftrence
\
pointin salesandcs$hflowbreakeven
betweenthebreakeven
d. Thedifference
;'713,33?
3 F33:333ffi-': ,qi
'ffi.I
f"q.FB"25g a set' lf the
41. VivianCorooratlonsells sets of encvclopediasVivian soHqqqO 6sbvariablecost pe.rset was P 175,anOtre rrxedcosts for V'ivianwere F-1qo,000.'whatis the Mvian's
degreeof operatingleverage(DOL)?
a. 0.67
-d 3.0
b. 0.75
e.trs
v.
oF
B
n,.T,rD
'ffi..
operating
oefrJLL'Yt
tte
level,
P
sales
At
a
300,000
vai'iabtecostsa/e iq,"A:4-saps.45. TuayCompany's
be
will
leverage
operating
degree
of
the
teveiageis f O. lf sat es increasenVgSA;600,
cr 6
D
a. 12
b .1o
{4
Fez,god
b. p 100,000
S?Tvt
-*
- ?42 Reaaez,
ScQiat( A<aa-daa4
ReSA
MSQ-02
ANALYSIS
E-PROFIT
COST-VOLUM
48. The indifferencepoint is the levelof volumeat whicha company fi
',db.
;.
d.
Earnsthe eameprofitunderdifferentoperatinggchemes
Earnsno profit
.Earns
its iargt profit
Earnslargeamountof profit
a.-, 11,25o
M
1 2.5 00
*l.t(
lzsoao
I' oaox
-rvvv
w 4 =
- ?pgD
/"'
a}f$tr)
l*x tYl';?lsl}
21''429
'
' rrithout
thbie itlformation.
d. An amountthat cannotbe,determined
t',.
' Printing
inkperdeck
Laborperdeck
overhead
Berdeck
,Variable
Fbd6st3
.A
tsfeetevn'pointfor
. Cofnipnv 1
800,000
b.
s00,m0
c.
ct.
533,334
533.334
O.trfil
0.7t -l ' 0.3V/
P 960,000
Breakevenpoint h
Carmgv 2
,120.000
iEO,@0
105,000
105.000
.\
: rr:
0.651
0.15|
1;25| I
0.35-l
P 252,000
Volumeat whic{rCo.l
d2 oro{itsge eoud
. 1,180,0001,@O,0oo1,000,ffi
1,180,0@
s'G't\)
cy1-I'C '- (l/^ -16
e,,ir
52.Bom ilobra.
car sefigfo
'"'
Thearnountof'tdetcrJ:lr-at
a. P 30,m0,000
P 24,000,000
/r
-'':--''-'
ufiich EofialilotorsyvTqi'!!!ry$Iryto
c. P 22,5O0,Qp0., r
d. P 12,m0,m0
*,ffi1
wttrchpl
--4'
?gov?''*zfoN'
7t.zzl '
e,l,x,, pt tD t,;Xx
SOLUTION:.
,
= 24,000
2% conrmissbn:1.2M(2o/o\
6"/6ornnbebr l.2ilt (e%)= 72,@O vB.
=
=
+
=
+
20
units
(40)
[
960,000
48,s0
72,000X !4,000 X 24;000
lndifierenesPoint:20 unltsx P 1,200,000per unit
.
53. Jon gorpqafiOn submlted to ygy.thefor|fowittgcondensgdincomc sEbrhefit
P 390,000
Sales(807ocapacity)
P 180,000
Variablecosts
82.5@ : 262.p00
Fixedcosts
gSegaa
Netincome
percentage
of
capacity?
a
as
What:isthe break-even'Point
Qlnv = >tw
ryb: ??tr9u{
ts
a. , 45o/o
o/ ssoto
.c.
d.
67.850/o
68J50/o
;
SOLUTION:
'": ";:':
300,000+80% = P 375,000
lffiYo,capacity:
Variablecostratio:180,000+ 300,000= 60% (CMR'=a0%)
sales:82,500+ 4|olo= P 206,250
' Breakeven
206,250t 375,000
point(basedon 100%capacity):
Breakeven
.",t
.:,,
:":
..\
'.
'+h
{.
.3,;tt:'i[\A 1'1
i
{'
-r- tlt'l
qo'"V)
I
MSQ-02
='-qq-
SrA
It
^l
-rl
lfo$"{'
r,{N tr
54. Thefollowingis TamsCompany'scostbehavio
btd;lrn C.,argorr
More
5.000rlnits__lk^, ( Z *tt)
than
4,@_untscrlet
.P35,000-."."
Fixedcosts
t
'
)aip]"contriortionmarginratio
d.Silr,tl,
Selling'price,P4O
5
&
7e
?rul.lmanyrihildmustbe sofdtg realizea profitof P 25,000?
How
":-;:i
c 12,s00(#
iA' r;i;')'=w v /4^,n A^*Mqr, a,, 4t11t
' u- n
14;ooo.
11,ooo
d.
.f
f,"(" u,rn/"k*
'' /*4l
' ':
. f55. Contributionmarginratiomuttipfiedby ttrg marginof safetyratioequals'
c. Breake\ien sr$ei rdio
D
a. Variablecost ratio
b. Fixedcost ratio
Net profit ratb
.d
fe
mgnr.rfactrysand.geils'T{hirtsimprintedwithcottrgenadris anolsh{Ans.Lastyear,
lvy Corporation
the shirts sold for P(75+-oacFHfd the variablecct to manufacturethem wa{ P 2.25-bs,.uqit. The
to breakeven.ThenetaJter-tax
incomelst yearwaqf5,040.)vy'S
companyneededto safr30pO0$hirts
expdctaiontq st" com
ltnap \-Z
W'4.]g14t q{rk
}d
p@
.' The
priceofitre
I rilr' iarn'
r'!c'.:.:aT
T:shirt$willbe l
salespr'.,rrur
\?&V
I { v .'
tu.7v"^",, .x,l
:W*:,otrr"D
K0oD :Jv?_*r{.
::::::*"
-Aw'Nl.
o VariaHecoststo manufacftJre
will increaseby onathird.
'''lo'/ '-f..,
. Fix6dcostswill increasqbp{Oolo.
r,
"r*
Theincometaxr&of{0% lrfll beunchatrgpd
' 'l L?
r
56. ThesgHing.price
natwot*Omaintain
thesaneofrtrb$nomx$n rate6s htyer'a
Yl
CPr
P 1o.oo
c. P 9.oo
-t
ol p a.is
b., Ps.7s
!b,
fl
tI ' ll5 fw57. The numberor r-snirts lvy Corporatimmustsellto bncd(evenin ttre comingyear is
l.t;:tr'
c. 20,000
B
a. 17,500
19,250
22,AM
cl.
-b.
56. Sdes b the oomdrgycar ere ExpccDd b Gxcud bd yurs b/ 1,000 uni&s.tf tfits occurs, lny's gfi
volurnein the caning y*f will b
a. 23.400units
c. 21.9& units
d 21.@0units
{ 22,600unfrs
,
ll^::--"11x:][-ff
volurne
in Fesos',tfrltfibc
a. P 207,000
b. P 213.750
-,-f
i*"for
to 68mP 22.5004"t
w'
44,/
71
theconrins
/pzzgsw
'd.
"
P 2s7.62s
.t
a
fl
tr
d RheaGonrpanyperhrrnodcoststudiesanOprc4e13,
60. The rnsfiagemeffi
ba!doh 40,@0unitsdryudi{sbrdjrab*:
Td#prn$d eosts , % of Wiable
P 400,000
:Dirctlsbsr
360,m0
300,m0
Factoryoverhead
gelling srd sdrninlrilrativeexpenee
ZW,Wr/rr,
$,
Whatunit-scstngpricewill yielda 10oAprofrtftom sa6e'o:t4O,0@units?
c. P 40.00
a. P 33.50
, rl
Direct.m#blai'
,{
P3s.oo
costs to totala.osts
100%
75Ys
40%
25o/o
ltu'l.s
4p'l' c
w'1.?
d. P 50.00
.:
soluTtoNcuroe:
Directmaterials,'
Birectlabor
Factory.overhead
Selfingand administrativeexpense
Total
S-r-
{oo$X
t-{
TotalCosts
P 400,000
360,000
300,000
200,000
@h6-r#
VariableCosts
FixedCogts
?"f
l$r
/\D
'{:t'c
l{,oar
(/./q/ofr