How many units of product Y must be sold in oder for the firm to earn operating income of P85,200? XYZ Inc. sells 3 products: X, Y and Z. Budgeted Fixed Cost for next period totals P106,500. Other projected data are as follows:SalesVolumeSelling VariableProductPriceCost(Units)16,00012,00052,000XP14P9Y1011How many units of product Y must be sold in order for the firm to earn operating income of PS5,200?

Contribution: It is difference of sales and marginal costs and is used to recovered the fixed cost.…

XYZ Inc. sells 3 products: X, Y and Z. Budgeted Fixed Cost for next period totals P106,500. Other projected data are as follows Sales Selling Variable Product Volume Price Cost (Units) 16,000 12,000 52,000 P14 P9 Y 10 6 11 How many units of product Y must be sold in order for the firm to earn operating income of PS5,200?

XYZ Inc. sells 3 products: X, Y and Z. Budgeted Fixed Cost for next period totals P106,500. Other projected data are as follows Sales Selling Variable Product Volume Price Cost (Units) 16,000 12,000 52,000 P14 P9 Y 10 6 11 How many units of product Y must be sold in order for the firm to earn operating income of PS5,200?

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter16: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 10E: Schylar Pharmaceuticals, Inc., plans to sell 130,000 units of antibiotic at an average price of 22...

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Schylar Pharmaceuticals, Inc., plans to sell 130,000 units of antibiotic at an average price of 22 each in the coming year. Total variable costs equal 1,086,800. Total fixed costs equal 8,000,000. (Round all ratios to four significant digits, and round all dollar amounts to the nearest dollar.) Required: 1. What is the contribution margin per unit? What is the contribution margin ratio? 2. Calculate the sales revenue needed to break even. 3. Calculate the sales revenue needed to achieve a target profit of 245,000. 4. What if the average price per unit increased to 23.50? Recalculate: a. Contribution margin per unit b. Contribution margin ratio (rounded to four decimal places) c. Sales revenue needed to break even d. Sales revenue needed to achieve a target profit of 245,000
XYZ Inc. sells 3 products: X, Y and Z. Budgeted Fixed Cost for next period totals P106,500. Other projected data are as follows: Selling Variable Cost Price Sales Product Volume (Units) 16,000 12,000 52,000 P14 P9 Y 10 6 11 How many units of product Y must be sold in order for the firm to earn operating income of P85,200?
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