INTERNATIONAL SCHOOL OF ASIA AND THE PACIFIC

Alimannao Hills, Peñablanca, Cagayan 3502 Philippines

Telefax No: (+63) (078) 304-1010
Website: www.isap.edu.ph E-Mail Address: adminoffice@isap.edu.ph

C OLLEGE OF B USINESS E DUCATION AND M ANAGEMENT

ACCOUNTANCY DEPARTMENT
Subject Area : INTEGRATED MANAGERIAL ACCOUNTING
Term : Pretest 1 - PRELIM
Semester : FIRST Fiscal Year: 2022 – 2023
Platform Used : FACE TO FACE EXAMINATION

Name: ______________________________________Year and section: _______________

Proctor: _____________________________________ Score: ________________________

DIRECTIONS: Write the correct answer in a separate sheet of paper.

CVP RELATIONSHIPS & PROFIT PLANNING; MULTIPLE PRODUCTS

8. FINLAND CORP. produces three models of pen and paper sets, regular, silver and gold. Price and cost data are as follows.
Regular Silver Gold
Selling price P10 P20 P30
Variable costs 6 8 15
Monthly fixed costs are P200,000.

REQUIREMENTS:
(1) Which model is most profitable per unit sold?
(2) Which model is most profitable per peso sales?
(3) Suppose that the sales mix in units is 40% Regular, 20% Silver, and 40% Gold.
(a) What is the weighted-average unit contribution margin?
(b) What is the break-even point in total units?
(c) How many total units must FINLAND sell to earn P30,000 per month?
(4) Suppose the sales mix in pesos is 30% Regular, 30% Silver, and 40% Gold.
(a) What is the break-even point in total pesos sales?
(b) What amount of sales is necessary to earn P30,000 per month?

9. SPAIN INC. produces and sells two products: A and B in the ratio of 3A to 5B. Selling prices for A and B are, respectively,
P1,200 and P240; respective variable costs are P480 and P160. The company's fixed costs are P1,800,000 per year.
REQUIREMENT: Compute the volume of sales in units of each product needed to:
(a) break even.
(b) earn P800,000 of income before income taxes.
(c) earn P800,000 of income after income taxes, assuming a 30 percent tax rate.
(d) earn 12 percent on sales revenue in before-tax income.
(e) earn 12 percent on sales revenue in after-tax income, assuming a 30 percent tax rate.

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Prepared by:

JAYNARD M. LABRADOR, CPA

Instructor