Guiller Company's projected profit for the coming year follows TOTAL PER UNIT Sales Variable costs Contribution margin Fixed cost P2,480,000 1,488,000 992,000 626,400 P 365,600 P 20.00 12.00 P 8.00 Operating income Required 1.Compute the break-even point in units 2.Compute the break-even point in pesos 3.Compute the contribution margin ratio 4.Using the projected sales for the coming year, compute the margin of safety and - margin of safety ratio.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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Subject: cost accounting

Guiller Company's projected profit for the coming year follows
TОTAL
PER UNIT
Sales
Variable costs
Contribution margin
Fixed cost
P 20.00
P2,480,000
1.488,000
992,000
626,400
P 365.600
12.00
P 8.00
Operating income
Required
1.Compute the break-even point in units.
2.Compute the break-even point in pesos
3.Compute the contribution margin ratio
4.Using the projected sales for the coming year, compute the margin of safety and -
margin of safety ratio.
Transcribed Image Text:Guiller Company's projected profit for the coming year follows TОTAL PER UNIT Sales Variable costs Contribution margin Fixed cost P 20.00 P2,480,000 1.488,000 992,000 626,400 P 365.600 12.00 P 8.00 Operating income Required 1.Compute the break-even point in units. 2.Compute the break-even point in pesos 3.Compute the contribution margin ratio 4.Using the projected sales for the coming year, compute the margin of safety and - margin of safety ratio.
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