Problem 10. Bulac Corporation manufactures and sells two products – Bangus and Tupig. Current revenue, costs and sales data on the two products appear below. Bangus P400 Tupig P600 Selling price per unit Variable cost per unit Number of units sold monthly 240 200 units 120 300 units Fixed costs and expenses are P704,000 per month. Required: a. Average contribution margin ratio. b. Composite breakeven point in units and in pesos. c. Allocation of composite breakeven point in units.

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Chapter7: Cost-volume-profit Analysis
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Problem 10. Bulac Corporation manufactures and sells two products – Bangus and Tupig. Current revenue,
costs and sales data on the two products appear below.
Bangus
P400
Tupig
P600
Selling price per unit
Variable cost per unit
Number of units sold monthly
240
120
200 units
300 units
Fixed costs and expenses are P704,000 per month.
Required:
a. Average contribution margin ratio.
b. Composite breakeven point in units and in pesos.
c. Allocation of composite breakeven point in units.
d. Assuming the company increases its fixed costs and expenses by P140,800, how many units of
Bangus and Tupig should be sold at breakeven point?
e. Refer to the original data, assuming the sales mix between Bangus and Tupig is 500 units for
Bangus and 300 units for Tupig, what is the new combined breakeven point in units and in
pesos?
f. Consider the original data, except that Pangasinan Company based its sales mix in units.
Determine the following:
i. Average UCM.
ii. Composite BEP in units and in pesos.
Transcribed Image Text:Problem 10. Bulac Corporation manufactures and sells two products – Bangus and Tupig. Current revenue, costs and sales data on the two products appear below. Bangus P400 Tupig P600 Selling price per unit Variable cost per unit Number of units sold monthly 240 120 200 units 300 units Fixed costs and expenses are P704,000 per month. Required: a. Average contribution margin ratio. b. Composite breakeven point in units and in pesos. c. Allocation of composite breakeven point in units. d. Assuming the company increases its fixed costs and expenses by P140,800, how many units of Bangus and Tupig should be sold at breakeven point? e. Refer to the original data, assuming the sales mix between Bangus and Tupig is 500 units for Bangus and 300 units for Tupig, what is the new combined breakeven point in units and in pesos? f. Consider the original data, except that Pangasinan Company based its sales mix in units. Determine the following: i. Average UCM. ii. Composite BEP in units and in pesos.
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