1. Compute the selling price if the contribution margin percentage is 25% and contribution margin per unit is P25, 000. P100, 000 P62, 500 P75, 000 P6, 250

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)
14th Edition
ISBN:9781305506381
Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Chapter17: Long-term Investment Analysis
Section: Chapter Questions
Problem 2E
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1. Compute the selling price if the contribution margin percentage is 25% and contribution margin per unit is P25, 000.
P100, 000
P62, 500
P75, 000
P6, 250
 
2. Compute the breakeven point in peso if the contribution margin ratio is 0.4 and total fixed cost is P14, 000, 000. 
P35, 000, 000
P5, 600, 000
P40, 600, 000
P56, 000, 000
 
3. To solve for the contribution margin, we get the difference of
Sales and Variable expenses
Sales and Selling expenses
Sales and Administration expenses
Sales and Fixed expenses
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