1.

Variable cost 100%

Selling price (100% + 60%) 160%
Less: VC markdown (100% - 10%) 90%

Variable cost ratio 100% / (160% x 90%) 69.4%

Less: VCR 100%
Total contribution margin ratio P30.6% B

2. Unit variable cost (450-126) 324 C

BEP in peso sales 5,625,000
BEP in units 12,500
Unit sales price P450

Total fixed cost 1,575,000

BEP in units 12,500
Contribution margin P126

3. Margin of safety percentage (3,656,250 / 9,281,250) = 39% or 39.39% D

Amount Units
Units sold (20,625 x P450) 9,281,250 20,625
Break even sales 5,625,000 12,500
Margin safety 3,656,250 9,875

4. Sales (12M x 110%) 13,200,000

Variable cost 7,200,000
CM 6,000,000

Fixed cost (6M x 20%) x 80% 960,000

Cost margin ratio (6M/13.2M) 45.45%
New BEP in pesos P2,112,211 A

5.
10% 5%
New order per unit 123 123
Variable cost per unit (60 + 26.25 +26.25) 112.50 117
Unit CM P10.50 P6

Regular sales (10% / 15% x P10.50) 7.00

Sub-contracted (5% / 15% x P6) 2.00
Ave. unit CM P9.00 B
6. Total fixed cost (1M +420K) 1,420,000
Income before tax (123,200 / 70%) 176,000
Total 1,596,000
Unit cost margin 140
Total units 11,400 units D

Sales per unit (P200 x 10%) 20

Variable cost 40
Unit variable cost 60
UCM (60/200) 140

7. Variable cost 1,875,000

Sales 2,500,000
VRC 75%
CMR 100% -75%) 25%
(25%-10%)
Fixed cost (P750,000 / 15%) P5,000,000 D

8. CMR = P 315,000 / (3,900,000 – 3,000,000) = 0.35 or 35% A

9. Breakeven sales 3,900,000

Multiply by profit volume ratio 35%
Total fixed costs 1,365,000 A

10. Increase in CM (50k units x ___)

Less: Increase in Operating Income [50k units x (10% x ____)
Increase in fixed cost

11. Unit VC (65 + 80 + 15) = 160

Unit CM (280 – 160) = 120
BEP Units (2,400,000/120) = 20,000 units D

12. Sales = (FC + OP) / Unit CM = Sales in units

= (2.4M + 600k) / 120 = 25,000 units C

13. After tax income 2,400,000

Before income tax (700k/70%) 1,000,000
Total Income Tax 3,400,000
Divide by; unit cm 120
Total units 28333.33 or 28,300 units D
14. Sales per unit P600
Variable cost (P600 x 5%) 330
Contribution margin P270
Total fixed cost P5,940,000
BEP 22,000 units D

15. Fixed cost 5,940,000

Less: salary 1,200,000
Total fixed cost P4,740,000
Income before tax (P1,512,000 / 70%) 2,160,000
Total P6,900,000
Contribution margin ratio 40%
Total revenue P17,250,000 B

Sales per unit P600

Variable cost (P600 x 10%) 360
Contribution margin P240
Sales per unit P600
Contribution margin ratio 40%

16. Product X (75 x 2/7) = 21.43

Product Y (36 x 5/7) = 25.71
Average UCM = 47.14
FC/Average UCM = 1,485,000/47.14 = 31,500 A

17. (FC/IBIT)/Average UCM

(660k + 1,485,000/47.14) = 45,500 units
Product X (45,503 x 2/7) = 13,000 B
Product Y (45,503 x 5/7) = 32,500 B

18. Unit VC (50 + 25) = 75

Unit CM (SP – Unit VC) (100 – 75) = 25

Increase in FC 4,000,000
Divide by unit CM 25
Total Increase in unit sales 160,000 B
19. Unit VC (37.50 + 25) = 62.50
Unit CM (SP – Unit VC) (75 – 62.50) = 12.50

Increase in FC 4,000,000
Total Increase in peso sales 4,000,000 A

20. ADO YEH

UCM 25 12.50
Divide No. of hours per unit
(18.75 UNIT/25 PER HR) .75hr
(5 unit/ 25 per hr) .20hr
Contribution margin per hour 33.33 62.5 x 100k = 6,250,000D

21. A B TOTAL
CM per unit 500 3,000
Multiply sales mix 60% 40%
Weighted CM 300 1200 1,500

BES= 3,000,000
1,500
(1200 X 60%) (5000 X 40%)

= 3,000,000
1,500
(720 +2000)

=3,000,000/ 0.55147 =

22. (30,000 x 45) + 0.06Sales

0.06S = 1,350,000
S = 22,500,00 D
Last year
Sales (22,000 x 55) 1,210,000.00
23. VC ( 22,000 x 50) (1,100,000.00)
CM 110,000.00
Less: FC 100,000.00
Profit before tax 10,000.00

New sales volume

Sales (27,000 x 54) 1,458,000.00
VC ( 27,000 x 50) (1,350,000.00)
CM 108,000.00
Less: FC 100,000.00
Profit before tax 8,000.00 a.
24. Sales percentage (0.7 + 0.3) 1
Less: VC %
Y (0.7 x 0.6) 0.42
Z (0.3 x 0.8) 0.24 -0.66
CM Ratio 0.34

BEP peso sales = FC/CM Ratio

BEP peso sales = 1,700,000/0.34
BEP pesos sales = 5,000,000 c.

Sales c. 6,000,000.00 squeezed (2,040,000/0.34)

VC
25. CM Ratio 2,040,000.00 squeezed (1,870,000 + 170,000)
FC (1,700,000 x 1.1) 1,870,000.00
Income before tax 170,000.00

Increase in BEP sales = Increase of FC/CM Ratio

(3,500,000 - 2,750,000) = 300,000/CM Ratio
26. 750,000 x CM Ratio =300,000
CM Ratio = 0.40 or 40%

Sales ratio - VC ratio = CM Ratio

1 - VC = 0.40
VC = 1 - 0.40
VC ratio = 0.60 or 60% c.

BEP sales = FC/CM Ratio

27.
2,750,000 = FC/40%
FC = 2,750,000 x 40%
FC = 1,100,000 b.
28. CM - FC = Profit 70.00 1.00
0.36S - 750,000 = 0.3S 45.00 0.64
0.06S = 750,000 25.00 0.36
S = 12,500,000

Units = Sales/Sales per unit 178,571.43

Units =12,500,000/70
Units = Sales/Sales per unit

29. CM Ratio = CM/Sales

CM Ratio = (3,000,000 - 2,250,000/ 3,000,000)
CM Ratio = 750,000/3,000,000
CM Ratio = 0.25 or 25%

BEP peso sale = FC/CM Ratio

BEP peso sale = 400,000/0.25
BEP peso sale = 1,600,000 a.

30. Ticket Sales (3,000,000/100) 3,000,000.00 500,000.00

Variable cost (30,000/5) (150,000.00)
CM 2,850,000.00 0.05
(25,000.00)
2,825,000.00

31.

32. CM ratio = 1 – Variable expense ratio = 1 – 0.42 = 0.58

Increase Net operating income = CM ratio x increase in sales – Increase in fixed
expense
= [(0.58 x 1,200,000) – 500,000] = 196,000 increase B

33. (100k x 120-1.4M – 1M) = 9,600,000 B

34. Desired sales = [(2M + 500k) / (100% - 60%)] = 6,250,000 / 200,000 = 31.25 D
35. Peso Sales = FC/(CMR – ROS)
= 1,050,000 / (40%-10%) = 3,500,000 A