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3. BBB Corporation
Solution:
Unit selling price= 80 ÷ 0.40 = 200
Contribution Margin= 120 ÷ 200 = 60%
Breakeven point sales volume= 240,000 ÷ 120= 2,000 units
Breakeven point peso sales= 240,000 ÷ 60= 400,000 pesos.
4. Operating Leverage
Solution:
Contribution Margin= 12,500- 3 = 12,497
Contribution Margin %= 12,497 ÷ 12,500= 99.9%
Margin Safety= 4,000 – 50.05= 3,494.95
Margin safety percentage= 3,494.95 ÷ 4000= 98.47%
Operating Income= 12,497 ÷ 5000= 2.49
Operating income %= 40 %
5. 789 company
Solution:
Lead time usage= 43,200 ÷ 360= 120 x 20 days= 2,400
Safety stocks= 43,200 ÷ 360= 120 x 8 days= 960
Reorder point= 2,400 + 960= 3,400
6. ABC corp
Solution:
1,080,000 + 330,000 = 1,410,000
1,410,000 ÷ 360 = 3,916.66
3,916.66 x 15 days= 58,750
3,916.66 x 12 days= 47,000
= 58750 – 47,000= 11,750
7. Material 456
Solution:
Economic order quantity= √ 2x 12800 x 50.00 ÷ .5 --------- √ 1,280,000 ÷ 0.5 = √ 2,560 ,000 = 1600
Optimum number of orders= 12800 ÷ 1600= 8
8. Receivable management
Solution:
450,000 + 550,000 = 1,000,000
-1,000,000 ÷ 2= 500,000
-1,080,000 x .25= 270,000
1,080,000 – 270,000= 810,000
500,000 ÷ 810,000 = 61.72% – Ratio of Receivables
810,000 ÷ 500,000= 1.62x – Receivable turnover
360 ÷ 1.62= 222.222 days
9. ghi corp
Solution:
₱94,500 ÷ 21 days = ₱4,500 per day
₱4,500 x 21 days = ₱94,500 in 3 weeks
₱4,500 x 28 days = ₱126,000 in 4 weeks
₱126,000 - ₱94,500 = ₱31,500 additional payable
10. MS.d
Solution:
Year
0 1x 5,000= 5,000= 5000
1 1x 1.25= 1.25 ÷ 1 0.8 x 5,000= 4000
2 1.25x 1.25= 0.15625÷ 1 = 0.64 x 5000= 3200
3 1.25x 1.25 x 1.25= 1.953125÷ 1 = 0.512 x 5000= 2560
4 1.25x 1.25 x 1.25 x 1.25= 2.44140625 ÷ 1= 0.4096 x 5000 = 2048
16,808