Sales Variable Expenses P 450,000 P 360,000 P 50,000 P 20,000 Lablab expects to have a total of 57,600 fixed expenses next year. What is the company's break-even peso sales? 2. Hi Products, Inc. sells two products, F and C. The sales mix is expected to be P3.00 of sales of product C for every P1.00 of sales of product F. Product F has a contribution margin of 40% whereas product C has a contribution margin ratio of 50%. Annual fixed costs are expected to be P125,000. What would be the overall break-even point for the company in peso sales?
Sales Variable Expenses P 450,000 P 360,000 P 50,000 P 20,000 Lablab expects to have a total of 57,600 fixed expenses next year. What is the company's break-even peso sales? 2. Hi Products, Inc. sells two products, F and C. The sales mix is expected to be P3.00 of sales of product C for every P1.00 of sales of product F. Product F has a contribution margin of 40% whereas product C has a contribution margin ratio of 50%. Annual fixed costs are expected to be P125,000. What would be the overall break-even point for the company in peso sales?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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answer 1 and 2 please with complete solution. thanks
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VIEWAnswer to part 1 (Step 1) Calculation of Sales Mix
VIEWAnswer to part 1 (Step 2) Calculation of weighted Contribution margin
VIEWPart 1 (step 3 ):Calculation of Break even sales of the company and Product wise Break even sales)
VIEWPart 2 (Step 1) Calculation of weighted Contribution margin
VIEWPart 2 (Step 2) Calculation of overall company breal even sales (peso)
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