CASE 3: JANSSEN FURNITURE JANSSEN FURNITURE produces and sells a particular home appliance. The variable cost (VC) per unit is P50. The unit selling price (SP) is P120 while fixed cost (FC) is P70,000. Determine the following: a. The P when R volume is 9,000 units. b. The BE quantity and revenue. c. The R when profit is P10,000. d. The amount by which the FC would have to be reduced to allow the firm to BE at a sales volume of 6,000 units, assuming the VC and the SP remain constant. e. The R(U) to cover FC.

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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This topic is about CVP analysis. Please check the photo for the problem. Answer the letter d and e only. 

CASE 3: JANSSEN FURNITURE
JANSSEN FURNITURE produces and sells a particular home appliance. The variable cost (VC)
per unit is P50. The unit selling price (SP) is P120 while fixed cost (FC) is P70,000. Determine the
following:
a. The P when R volume is 9,000 units.
b. The BE quantity and revenue.
c. The R when profit is P10,000.
d. The amount by which the FC would have to be reduced to allow the firm to BE at a sales
volume of 6,000 units, assuming the VC and the SP remain constant.
e. The R(U) to cover FC.
Transcribed Image Text:CASE 3: JANSSEN FURNITURE JANSSEN FURNITURE produces and sells a particular home appliance. The variable cost (VC) per unit is P50. The unit selling price (SP) is P120 while fixed cost (FC) is P70,000. Determine the following: a. The P when R volume is 9,000 units. b. The BE quantity and revenue. c. The R when profit is P10,000. d. The amount by which the FC would have to be reduced to allow the firm to BE at a sales volume of 6,000 units, assuming the VC and the SP remain constant. e. The R(U) to cover FC.
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