Aklan State University

School of Management Sciences

Banga, Aklan

Business Calculus

Mark Anthony R. Arante

BS-Accountancy 3

Selling
Price per
unit
Variable
cost per
unit
Fixed cost

P195

P28

P700

P300

P70

P45

P8.50

P400

P105

P25

P3,000

P1,500

P21,000

P1,800

P1,600

Contributio
n Margin

P150

P19.50

P300

P195

P45

Mark up %

77%

70%

43%

65%

64%

Break even
Point Units

20 units

77 units

70 units

9 units

36 units

Break even
Point Price

P3,900

P2,156

P49,000

P2,700

P2,520

Profit

P2,250

P3,375

P69,000

P1,125

P1,550

@ x=

35 units

250 units

300 units

15 units

70 units

P= R-Yc

Solution:

=195x-(45x + 3000)

ROW 1:

=195(35)-(45(35) +3000)

a.) CM=SP-VC
= 195-45

=6825-(1575+3000)
=6,875-4,575

CM= P150

P=P2, 250
b.) % mark up
% mark up= CM/SP

ROW 2:

=150/195
% mark up =77%

a.) Contribution margin

CM= SP-VC

c.) Break even points (units)

R: y= 195x

= 28-8.50
CM=P19.50

Fc: y= 3000
Yc: y= 45x + 3000

b.) % mark up
% mark up= CM/SP
= 19.50/28

R= Yc
195x=45x + 3000

195x-45x=3000

% mark up =70%

c.) Break even point (units)

150x=3000

R: y=28x

x=20 units

Fc: y=1500
Yc: y=8.50x+1500

d.) Break even point (price)

y= 195x
= 195(20)
y=P 3,900

R=Yc
28x=8.50x+1500
28x-8.50x=1500
19.50x=1500

e.) Profit @ x= 35 units

x=77 units

CM=P 300
d.) Break even point (price)
y=28x
=28(77)

c.) % mark up
% mark up=CM/SP

y=P 2,156

=300/700
% mark up=43%

e.) Profit=P 3375 @x=?

P=R-Yc

d.) Break even point (units)

3375=28x-(8.50x+1500)

R: y=700x

3375=28x-8.50x-1500

Fc:y=21000

-28x-8.50x=-3375-1500

Yc:y=400x+21000

19.50x=4875
x=250 units

R=Yc
700x=400x+21000

ROW 3:

700x-400x=21000
300x=21000

a.) Variable cost per unit

x=70 units

P=R-Yc
69000=700x-((x) (300)+21000)
69000=700x-(300x+21000)
69000=700(300)-(300x+21000)
69000=210000-300x-21000

e.) Break even point (price)

y=700x
=700(70)
y=P 49,000

300x=210000-69000-21000
300x=120000
VC=400

ROW 4:
a.) Selling price per unit
SP=VC/1-% mark up

b.) Contribution margin

CM=SP-VC
=700-400

=105/1-65%
=105/35%
SP=P 300

ROW 5:
b.) Contribution margin
CM= SP-VC
= 300-105
CM=P 195

a.) Contribution margin

CM=SP-VC
=70-25
CM=P 45
b.) % mark up

c.) Break even point (units)

% mark up=CM/SP

R: y=300x
Fc: y=1600

=45/70
% mark up=64%

Yc: y=105x+1600
c.) Break even point (units)
R=Yc

R: y=70x

300x=105x+1600

Fc: y=1600

300x-105x=1600

Yc: y=25x+1600

195x=1600
BEP=9 units

R=Yc
70x=25x+1600

d.) Break even point (price)

y=300x
=300(9)

70x-25x=1600
45x=1600
x=36 units

BEP=P2,700
e.) Profit=P 1125 @x=?
P=R-Yc
1125=300x-(105x+1800)

d.) Break even point (price)

y=70x

1125=300x-105x-1800

=70(36)

-300x+105x=-1125-1800

y=P 2,520

-195x=-2925
x=15 units

e.) @x=70 units

f.) Profit @x =70 units

P=R-Yc
=70x-(25x+1600)
=70(70)-(25(70) + 1600)
=4900-(1750+1600)
=4900-3350
P=P1, 550