• Maintain professional competence
• Communicate information fairly
through ongoing development.
• Perform professional duties in
accordance with applicable laws
and regulations.
• Prepare complete and clear
reports from relevant and reliable
information.
• Confidential information shall not
be disclosed, unless legally
obligated to do so.
• Inform subordinates regarding
confidentiality of information.
• Do not use confidential information
for personal advantage.
• Avoid conflicts of interest.
• Refrain from doing activities that and objectively.
might have prejudice in the proper • Fully disclose all relevant
carrying out of duties. information that could reasonably
• Refuse gift or favor that might be expected to influence an
influence related work. intended user’s understanding of
• Refrain from undermining the the reports, comments, and
attainment of the organization’s recommendations presented.
objectives.
• Communicate potential
professional constraints that
would preclude responsible
judgment or successful
performance of an activity.
• Communicate both favorable and
unfavorable information and
professional judgments or
opinions.
• Refrain from any activity that
would discredit the profession.
(INPUT) (PROCESS) (OUTPUT)
Sales xx,xxx
Less: Cost of goods sold (x,xxx)
Gross profit x,xxx
Less: Operating expenses (x,xxx)
Net income xx,xxx
Sales xx,xxx
Less: Variable costs (x,xxx)
Contribution margin x,xxx
Less: Fixed costs (x,xxx)
Net income xx,xxx
Sales 50,000 x 30 1,500,000
- CGS 50,000 x 14 700,000
Gross profit 800,000
- OpEx 100,000 + (50,000 x 2) 200,000
Net Income 600,000

Sales 50,000 x 30 1,500,000

- VC 50,000 x 12 600,000
CM 900,000
- FC 300,000
Net Income 600,000
 Sales 40,000 x 30 1,200,000
- CGS 40,000 x 14 560,000
Gross profit 640,000
- OpEx 100,000 + (40,000 x 2) 180,000
Net Income 460,000

Sales 40,000 x 30 1,200,000

- VC 40,000 x 12 480,000
CM 720,000
- FC 300,000
Net Income 420,000

ACNI 460,000 VCNI 420,000

- FOH (EI) 40,000 + FOH (EI) 40,000
VCNI 420,000 ACNI 460,000
 Sales 60,000 x 30 1,800,000
- CGS 60,000 x 14 840,000
Gross profit 960,000
- OpEx 100,000 + (60,000 x 2) 220,000
Net Income 740,000

Sales 60,000 x 30 1,800,000

- VC 60,000 x 12 720,000
CM 1,080,000
- FC 300,000
Net Income 780,000

ACNI 740,000 VCNI 780,000

+ FOH (BI) 80,000 - FOH (BI) 80,000
- FOH (EI) 40,000 + FOH (EI) 40,000
VCNI 780,000 ACNI 740,000
Sales xx,xxx
Less: Variable Costs (x,xxx)
Contribution Margin xx,xxx
Less: Fixed Costs (x,xxx)
Net Income x x ,x x x
 Per unit Units Percentages Amounts
S 120.00 1,250 100% 150,000.00
- VC 48.00 40%
CM 72.00 60% 90,000.00
- FC 90,000.00
NIBT -
- tax
NIAT
 Per unit Units Percentages Amounts
S 120.00 2,000 100% 240,000.00
- VC 48.00 2,000 40% 96,000.00
CM 72.00 60% 144,000.00
- FC 90,000.00
NIBT 54,000.00
- tax 30% NIBT 16,200.00
NIAT 37,800.00
 Per unit Units Percentages Amounts
S 120.00 1,944 100% 233,333.33
- VC 48.00 40%
CM 72.00 60% 140,000.00
- FC 90,000.00
NIBT 50,000.00
- tax 30% NIBT
NIAT
 Per unit Units Percentages Amounts
S 120.00 1,875 100% 225,000.00
- VC 48.00 40%
CM 72.00 60%
- FC 40% 90,000.00
NIBT 20%
- tax
NIAT
 Per unit Units Percentages Amounts
S 115.87 1,500 100% 173,809.52
- VC 40%
CM 60% 104,285.71
- FC 90,000.00
NIBT 14,285.71
- tax 30% NIBT
NIAT 10,000.00
 A B C
Selling price 150 210 360
VC/unit 90 140 190
CM/unit 60 70 170
SMR 20% 20% 60%
WACM 12 14 102 128

Product A B C Fixed cost 400,000

Divide by: WACM 128
Selling price per P150 P210 P360
Breakeven point in units, whole company 3,125 units
unit
Variable cost per P90 P140 P190 Allocation as to sales mix:
unit A - 3,125 units x 20% 625 units
B - 3,125 units x 20% 625 units
Sales mix 20% 20% 60%
percentage C - 3,125 units x 60% 1,875 units
Expressing BEP in peso sales:
Total Fixed Cost P400,000
A - 625 units x P150 93,750
B - 625 units x P210 131,250
C - 1,875 units x P360 675,000
₱ 111,000.00 ₱ 110,000.00 ₱ 105,000.00 ₱ 125,000.00

₱ 1,000.00 ₱ 5,000.00 ₱ 20,000.00

Unfavorable Spending Variance Unfavorable Efficiency Variance Favorable Volume Variance

₱ 6,000.00 Unfavorable Budget Variance ₱ 20,000.00

Favorable Volume Variance

₱ 14,000.00 Favorable Total Overhead Variance

(Overapplied)
 4-way 3-way 2-way 1-way
VOH Spending Variance ₱ 6,000.00 U
VOH Efficiency Variance 5,000.00 U Spending Variance ₱ 1,000.00 U
FOH Spending Variance 5,000.00 F Efficiency Variance 5,000.00 U Budget Variance ₱ 6,000.00 U
FOH Volume Variance 20,000.00 F Volume Variance 20,000.00 F Volume Variance 20,000.00 F Underapplied overhead ₱ 14,000.00 F
Total Overhead Variance ₱ 14,000.00 F Total Overhead Variance ₱ 14,000.00 F Total Overhead Variance ₱ 14,000.00 F Total Overhead Variance ₱ 14,000.00 F

VOH Spending Variance ₱ 6,000.00 U VOH Spending Variance ₱ 6,000.00 U

FOH Spending Variance 5,000.00 F VOH Efficiency Variance 5,000.00 U
Total Spending Variance ₱ 1,000.00 U FOH Spending Variance 5,000.00 F
Toal Budget Variance ₱ 6,000.00 U