GRADED QUIZ 03

(20 Points)

Name: ____________________________________

SAY A LITTLE PRAYER Inc. (SALPI) started its operation November 5, 2019 and is targeting a P455,000 profit
for January 2020. Each product is sold for P75 per piece.
Production Total Cost and expenses
November 3,500 units P230,000
December 4,200 units 265,000

Required: (1) Compute the following and write your answers on the space provided
(2) show your computation on a separate paper

a. What is the variable cost per unit? ____________ & amount of fixed cost? ________________

b. What is the break-even point in units and pesos using the contribution margin approach?
____________________ units;

Show the Income Statement at breakeven point:

SALES ……………………………….. P __________________

VARIABLE COST …………………… ( _________________)

CONTRIBUTION MARGIN ………. __________________

FIXED COST ………………………. (__________________)

PROFIT (LOSS)………………………… ___________________

c. What is the sales that should be met to achieve the desired profit of SALPI?
___________________________units;

Show the Income Statement with the desired profit:

SALES ……………………………….. P __________________

VARIABLE COST …………………… ( _________________)

CONTRIBUTION MARGIN ………. __________________

FIXED COST ………………………. (__________________)

PROFIT (LOSS)………………………… ___________________

Computation:

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