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  • Management Review 19

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    Jhon Braxton
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    The document contains three accounting and finance questions. The first question asks how many units a company must sell to break even given fixed costs of P180,000, variable costs of P24 per unit, a selling price of P30 per unit, and a target profit of P90,000 after 25% taxes. The second question provides information on a company's sales, fixed expenses, and net operating income at the breakeven point and asks for the margin of safety. The third question asks whether a company should purchase a component from an outside supplier that would cost P12 rather than making it in-house at a total cost of P12 given some unavoidable fixed overhead costs.

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    management review 11

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    management review 19

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    The document contains three accounting and finance questions. The first question asks how many units a company must sell to break even given fixed costs of P180,000, variable costs of P24 per unit, a selling price of P30 per unit, and a target profit of P90,000 after 25% taxes. The second question provides information on a company's sales, fixed expenses, and net operating income at the breakeven point and asks for the margin of safety. The third question asks whether a company should purchase a component from an outside supplier that would cost P12 rather than making it in-house at a total cost of P12 given some unavoidable fixed overhead costs.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    7 views1 page

    Management Review 19

    Uploaded by

    Jhon Braxton
    The document contains three accounting and finance questions. The first question asks how many units a company must sell to break even given fixed costs of P180,000, variable costs of P24 per unit, a selling price of P30 per unit, and a target profit of P90,000 after 25% taxes. The second question provides information on a company's sales, fixed expenses, and net operating income at the breakeven point and asks for the margin of safety. The third question asks whether a company should purchase a component from an outside supplier that would cost P12 rather than making it in-house at a total cost of P12 given some unavoidable fixed overhead costs.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    of 1

    Question 282 pts

    A company makes a product that sells for P30. During the coming year, fixed costs are
    expected to be P180,000, and variable costs are estimated at P24 per unit. The
    company targets a P90,000 profit after a 25% tax. How many units must the company
    sell to simply break even?
    Question 292 pts
    The following information relates to Snorbird Corporation.
    Sales at the breakeven point P312,500
    Total fixed expenses 250,000
    Net operating income 150,000
     
    What is Snowbird’s margin of safety? 30000
    Question 302 pts
    Ring Company makes telephones. Currently, Ring makes all components of the
    telephones in-house. An outside company has offered to supply one component, part
    number X76, for P12 each. Ring uses 22,000 of these components per year. Costs of
    X76 are as follows:
       Direct materials, P3.00
       Direct labor, P1.50
       Variable overhead, P2.75
       Fixed overhead, P5.00
     
    Suppose that only 30% of the fixed overhead is unavoidable even if part X76 is not
    made by Ring. Should Ring purchase the part from the outside supplier?

    Group of answer choices

    Yes, income will increase by P74,500


    No, income will decrease by P10,500
    No, income will decrease by P15,000
    No, income will decrease by P27,500
    Yes, income will increase by P10,500
    No, income will decrease by P71,500

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