Breakeven ComputationDirections: Analyze the given problems and compute for what is being asked.1. TechGate makes PS4 games with a selling price of P1,040.00 per CD with a variable cost of P624.00per unit. The fixed cost for the period is P2,080,000. How many CDs should TechGate sell tobreakeven?2. Adel and Tony run a small online business specializing in delivering organic fruit and vegetables to thelocal area. They buy from local farms and package these together in boxes. Each box costs P208.00and is being sold at P500.00 per box. Other fixed costs incurred each year are as follows:PhpRent of delivery van4,500Rent of premises10,500Direct wages10,000Advertising2,000Calculate the break-even point in boxes (unit). Directions: Analyze the balance sheet and compute for what is being asked.Exon Oil CompanyBalance SheetFor the year ended December 31, 201A$ millionAssetsCurrent AssetsInventories8,745Trade and associated company18,865Short term investment125Current tax receivable78Cash at bank4,457Total32,270Non-current Assets35,008Property, plant and equipmentIntangible assets1,350Goodwill2,9945,892Investments in associatesFinancial investments2,139Total47,383Total assets79,653LiabilitiesCurrent Liabilities29,855Account payablesFinance debt2,650Tax payable3,570Unearned revenues768Total current liabilities36,843Non-Current Liabilities3,458Finance debtBond payable4,071Wage payable2,087Interest payable3,302Total long-term liabilities12,918Total liabilitiesEquityCommon stock26,871Retained Earning3,021Total equity29,892Total liabilities and equity79,6531. Compute for the current ratio and describe the enterprise's capability to pay short-term liabilitieswith current assets.2. Compute for debt ratio to determine the relative value of a company's debt status.

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1. TechGate makes PS4 games with a selling price of P1,040.00 per CD with a variable cost of P624.00 per unit. The fixed cost for the period is P2,080,000. How many CDs should TechGate sell to breakeven?

1. TechGate makes PS4 games with a selling price of P1,040.00 per CD with a variable cost of P624.00 per unit. The fixed cost for the period is P2,080,000. How many CDs should TechGate sell to breakeven?

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter16: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 8E

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