The Warner Company sells its only product for P30 and the variable costs amount to P21 per unit.  Fixed cost for each year is P270,000. Questions: 1. Assuming the desired profit for next year (if all costs and selling price remains the same) is placed at P90,000, what is the margin of safety in units? 2. What will be the projected sales in pesos with such desired profits of P90,000? 3. If instead, the desired profit is 5% of sales, how many units must be sold to achieve such?

The NUBD Co. is expecting an increase in fixed costs by P78,750 upon moving their place of business to the downtown area. Likewise it is anticipating that the selling price per unit and the variable expenses will not change. At present, the sales volume necessary to breakeven is P750,000 but the expected increase in fixed costs, the sales volume necessary to breakeven will go up to P975,000. Based on these predictions, what would be the required peso sales to earn P35,000 in the coming year?

Suppose that Sea Shell Oil Company (SS) is pumping oil at a field off the coast of Nigeria. At this site, it has an extraction cost of $30 per barrel for the first 5 million barrels it pumps each year and then $60 per barrel for all subsequent barrels that it pumps each year, up to the site's maximum capacity of 90 million barrels per year. Instructions: Enter your answers as a whole number. In part b, round your answers for accounting and economic profit to 1 decimal place. a. Suppose the user cost is $60 per barrel for all barrels and that the current market price for oil is $105 per barrel. How many barrels will SS pump this year? million barrels What is the total accounting profit on the total amount of oil it pumps? $ million What is the total economic profit on those barrels of oil? $ million b. What will happen if the current market price for oil rises to $135 per barrel, while the user cost remains at $60 per barrel? How many barrels will SS pump? million barrels What will be…

NUBD Co. plans to market a new product. Based on its market studies. It estimates that it can sell 70,000 units in 2021. The selling price per unit is P2.00. Variable cost ratio is 40% of sales. Fixed Costs are estimated to be P60,000.  1. Compute the break even point in units 2. Compute the break even point in sales pesos.