Financial & Managerial Accounting
Financial & Managerial Accounting
14th Edition
ISBN: 9781337119207
Author: Carl Warren, James M. Reeve, Jonathan Duchac
Publisher: Cengage Learning
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Prohlem 6
TOTAL
PER UNIT
Saies
Varable costs
Cuntribution margin
Faad cont
Operating income
P2,480,000
1488.000
992,000
626,400
P 365,600
P 20.00
12.00
P 8.00
Rrquired
LCompute the break-even point in units
2Campute the break-even point in pesos
1.Compute the coutribution margin ratio
4Uhing the projected sales for the coaming year, compute the margin of unfety and-
margin of safety ratio
Problem 7
Satment of Comprehensive Income for Brooklyn Company for the current year is
Sales
Variable cost
Contribution mjargin
Fined cost
Operating income
P 750,000
600,000
150,000
100.000
P 50,000
Requined
LCompute the break-even point
Compute the margin of safety
1Compute the margin of safety ratio
4 Compute the degree of operating leverage
e the company experiences a 30% increase in revenues, compute for the
percentage change in profits
Cost Accounnng (oral)
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Transcribed Image Text:Prohlem 6 TOTAL PER UNIT Saies Varable costs Cuntribution margin Faad cont Operating income P2,480,000 1488.000 992,000 626,400 P 365,600 P 20.00 12.00 P 8.00 Rrquired LCompute the break-even point in units 2Campute the break-even point in pesos 1.Compute the coutribution margin ratio 4Uhing the projected sales for the coaming year, compute the margin of unfety and- margin of safety ratio Problem 7 Satment of Comprehensive Income for Brooklyn Company for the current year is Sales Variable cost Contribution mjargin Fined cost Operating income P 750,000 600,000 150,000 100.000 P 50,000 Requined LCompute the break-even point Compute the margin of safety 1Compute the margin of safety ratio 4 Compute the degree of operating leverage e the company experiences a 30% increase in revenues, compute for the percentage change in profits Cost Accounnng (oral)
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