Javellana Jessel G.

BSBA-OM 201

Candy Stand Enterprise

The owner of Candy Stand Enterprise, a local candy store, desires to achieve a profit of P60,000 by
selling 3,000 packs of gummy bears. The fixed cost involved in producing the gummy bears is P60,000,
while the variable cost per pack is P100.
A. Price per pack of gummy bear (10 points)
Answer
xp = vx + FC + Desired Profit
3,000 = (3,000) (100) + 60,000 + 60,000
3,000 = 3,000 + 60,000 +6 60,000
3,000 = 420,000
P = 140
Rose Perfume
Rose Perfume are sold at a price of P150 per bottle with a variable cost of P60 per bottle. The fixed
expense of the business is P20,000 per year.
Requirements: (7 items x 10 points)
A. Contribution per Unit
Contribution per Unit = Selling Price Per Unit – Variable Cost Per Unit
= 150 – 60
= 90
B. Profit-Volume (P/V) Ratio
Contribution Per Unit
P/V Ratio = × 100
Selling Price Per Unit
90
= × 100
150
= 0.6 × 100
= 60%
C. Break-even Point in Units
¿ Cost
BEP in Units =
Contribution Per Unit
20,000
=
90
= 222.222….....
D. Break-even Point in Value
¿ Cost
Break-even Point in Value = P
Ratio
V
20,000
=
0.6
= 33,333.333……

E. Total Contribution for Sales of 700 Units

Total Contribution = Estimated no. of Unit for Sales × Contribution Per Unit
Javellana Jessel G. BSBA-OM 201

= 700 × 90
= 63,000
F. Profit for Sales Of 700 Units
Profit = Total Contribution – Total Fixed Cost
= 63,000 – 20,000
= 43,000
G. Required Sales to Earn a Profit of 50,000 in Annual Terms
¿ Cost + Desired Profit
Required Sales = P
Ratio
V
20,000+50,000
=
0.6
70,000
=
0.6
= 116,666.666…..