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3. Sales volume Selling price per unit Direct materials Direct labor Variable factory overhead Fixed factory overhead Full cost per unit Gross profit per unit 4. B2 20,000 P 180 65 40 16 25 146 P 34 Other information pertaining to operations during the year ending December 31, 2019, follow: 40,000 P 160 40 40 16 25 121 39 1. Variable selling costs were 5% of sales. 2. Fixed selling and administrative costs were P207,330 (with a capacity to handle volumes of up to twice those of 2019. b. P The present plant facilities provide a capacity of 60,000 units, this can be increased to a capacity of 100,000 units at an additional cost of P80,000. The company is taxed at a rate of 40%. Expected changes for the year ending December 31, 2020, include the following: The selling price of B4 is expected to increase by 10%, but no other changes are expected in costs or selling prices for either product. a. The sales mix for 2015 is expected to be in the ratio of 2 units of B2 to 3 units of B4.

3. Sales volume Selling price per unit Direct materials Direct labor Variable factory overhead Fixed factory overhead Full cost per unit Gross profit per unit 4. B2 20,000 P 180 65 40 16 25 146 P 34 Other information pertaining to operations during the year ending December 31, 2019, follow: 40,000 P 160 40 40 16 25 121 39 1. Variable selling costs were 5% of sales. 2. Fixed selling and administrative costs were P207,330 (with a capacity to handle volumes of up to twice those of 2019. b. P The present plant facilities provide a capacity of 60,000 units, this can be increased to a capacity of 100,000 units at an additional cost of P80,000. The company is taxed at a rate of 40%. Expected changes for the year ending December 31, 2020, include the following: The selling price of B4 is expected to increase by 10%, but no other changes are expected in costs or selling prices for either product. a. The sales mix for 2015 is expected to be in the ratio of 2 units of B2 to 3 units of B4.

FINANCIAL ACCOUNTING
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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Narda Company produces and sells two distinct products, B2 and
B4. Available data for the year ending December 31, 2019, follow (see attached image):

 

REQUIRED: Calculate the number of units of each product the company must sell to earn
an after-tax net income of P135,000 for the year ending December 31, 2020. 

Sales volume Selling price per unit Direct materials Direct labor Variable factory overhead Fixed factory overhead Full cost per unit Gross profit per unit B2 20,000 P 180 65 40 16 25 146 P 34 B4 40,000 1. Variable selling costs were 5% of sales. 2. 3. P 160 40 40 16 25 121 P 39 Other information pertaining to operations during the year ending December 31, 2019, follow: Fixed selling and administrative costs were P207,330 (with a capacity to handle volumes of up to twice those of 2019. The present plant facilities provide a capacity of 60,000 units, this can be increased to a capacity of 100,000 units at an additional cost of P80,000. The company is taxed at a rate of 40%. 4. Expected changes for the year ending December 31, 2020, include the following: The selling price of B4 is expected to increase by 10%, but no other changes are expected in costs or selling prices for either product. b. The sales mix for 2015 is expected to be in the ratio of 2 units of B2 to 3 units of B4.
Transcribed Image Text:Sales volume Selling price per unit Direct materials Direct labor Variable factory overhead Fixed factory overhead Full cost per unit Gross profit per unit B2 20,000 P 180 65 40 16 25 146 P 34 B4 40,000 1. Variable selling costs were 5% of sales. 2. 3. P 160 40 40 16 25 121 P 39 Other information pertaining to operations during the year ending December 31, 2019, follow: Fixed selling and administrative costs were P207,330 (with a capacity to handle volumes of up to twice those of 2019. The present plant facilities provide a capacity of 60,000 units, this can be increased to a capacity of 100,000 units at an additional cost of P80,000. The company is taxed at a rate of 40%. 4. Expected changes for the year ending December 31, 2020, include the following: The selling price of B4 is expected to increase by 10%, but no other changes are expected in costs or selling prices for either product. b. The sales mix for 2015 is expected to be in the ratio of 2 units of B2 to 3 units of B4.
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