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Problem 5 The BODY Company sold 50,000 units of its product at P24 per unit. Variable costs are P13.20 per unit (manufacturing costs of P10 and selling costs of P3.20). Fixed costs are incurred uniformly throughout the year and amount to P594, 000 (manufacturing costs of P400, 000 and selling costs of P194, 000). There are no beginning and ending inventories. REQUIRED:

Problem 5 The BODY Company sold 50,000 units of its product at P24 per unit. Variable costs are P13.20 per unit (manufacturing costs of P10 and selling costs of P3.20). Fixed costs are incurred uniformly throughout the year and amount to P594, 000 (manufacturing costs of P400, 000 and selling costs of P194, 000). There are no beginning and ending inventories. REQUIRED:

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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Problem 5 The BODY Company sold 50,000 units of its product at P24 per unit. Variable costs are P13.20 per unit (manufacturing costs of P10 and selling costs of P3.20). Fixed costs are incurred uniformly throughout the year and amount to P594, 000 (manufacturing costs of P400, 000 and selling costs of P194, 000). There are no beginning and ending inventories. REQUIRED:
Transcribed Image Text:Problem 5 The BODY Company sold 50,000 units of its product at P24 per unit. Variable costs are P13.20 per unit (manufacturing costs of P10 and selling costs of P3.20). Fixed costs are incurred uniformly throughout the year and amount to P594, 000 (manufacturing costs of P400, 000 and selling costs of P194, 000). There are no beginning and ending inventories. REQUIRED:
4. If labor costs were 50% of variable costs and 20% of fixed costs, a 10% increase in wages and salaries would increase the number of units necessary to break-even. Compute the break-even units. 5. What was Beep's net income or loss?
Transcribed Image Text:4. If labor costs were 50% of variable costs and 20% of fixed costs, a 10% increase in wages and salaries would increase the number of units necessary to break-even. Compute the break-even units. 5. What was Beep's net income or loss?
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