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10. Product Cott has sales of P200,000, a contribution margin of 20%, and a margin of safety of P80,000. What is Cott's fixed cost? a. P16,000 b. P24,000 c. P80,000 d. P96,000 e. None of these; answer is

10. Product Cott has sales of P200,000, a contribution margin of 20%, and a margin of safety of P80,000. What is Cott's fixed cost? a. P16,000 b. P24,000 c. P80,000 d. P96,000 e. None of these; answer is

Cornerstones of Cost Management (Cornerstones Series)
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 36P: Faldo Company produces a single product. The projected income statement for the coming year, based...
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Pesos, P72,000 P15,000 Parcels 20,000 What is Sender's estimated cost for mailing 12,000 parcels? а. Р36,000 b. P45,000 e. None of these; c. P51,000 d. P60,000 answer is 10. Product Cott has sales of P200,000, a contribution margin of 20%, and a margin of safety of P80,000. What is Cott's fixed cost? a. P16,000 e. None of these%; c. P80,000 d. P96,000 b. P24,000 answer is 11 .Del Co. has fixed costs of P100,000 and break-even sales of P800,000. What is the projected profit at P1,200,000 sales? a. P50,000 b. P150,000 с. Р200,000 d. P400,000 e. None of these; answer is 12. During 2020, Thor Lab supplied hospitals with a comprehensive diagnostic kit for P1,200. At a volume of 8,000 kits, Thor had fixed costs of P1,000,000 and a profit before income taxes of P200,000. Due to an adverse legal decision, Thor's 2021 liability insurance increased by P1,200,000 over 2020. Assuming the volume and other costs are unchanged, what should the 2021 price be if Thor is to make the same P200,000 profit before income taxes? e. None of these; a. P1,200 b. P1,350 c. P1,500 d. P2,400 answer is
Transcribed Image Text:Pesos, P72,000 P15,000 Parcels 20,000 What is Sender's estimated cost for mailing 12,000 parcels? а. Р36,000 b. P45,000 e. None of these; c. P51,000 d. P60,000 answer is 10. Product Cott has sales of P200,000, a contribution margin of 20%, and a margin of safety of P80,000. What is Cott's fixed cost? a. P16,000 e. None of these%; c. P80,000 d. P96,000 b. P24,000 answer is 11 .Del Co. has fixed costs of P100,000 and break-even sales of P800,000. What is the projected profit at P1,200,000 sales? a. P50,000 b. P150,000 с. Р200,000 d. P400,000 e. None of these; answer is 12. During 2020, Thor Lab supplied hospitals with a comprehensive diagnostic kit for P1,200. At a volume of 8,000 kits, Thor had fixed costs of P1,000,000 and a profit before income taxes of P200,000. Due to an adverse legal decision, Thor's 2021 liability insurance increased by P1,200,000 over 2020. Assuming the volume and other costs are unchanged, what should the 2021 price be if Thor is to make the same P200,000 profit before income taxes? e. None of these; a. P1,200 b. P1,350 c. P1,500 d. P2,400 answer is
7. Thomas Company sells products X, Y, and Z. Thomas sells 3 units of X for each unit of Z, and 2 units ofY for each unit of X. The contribution margins are P1.00 per unit of X, P1.50 unit of Y, and P3.00 per unit of Z. Fixed costs are P600,000. How many units of X would Thomas sell at the break-even point? a. 40,000 b. 120,000 per c. 360,000 d. 400,000 e. None of these; answer is 8. Day Mail Order Co. applied the high-low method of cost estimation to customer order data for the first four months of 2020. What is the estimated variable order filing cost component per order? Orders 1,200 1,300 1,800 1,700 Costs January February Р3,120 3,185 March 4,320 3,895 April a. P2.00 с. Р2.48 e. None of these; b. Р2.42 d. P2.50 answer is 9. Sender, Inc. estimates parcel mailing costs using data shown on the chart next page:
Transcribed Image Text:7. Thomas Company sells products X, Y, and Z. Thomas sells 3 units of X for each unit of Z, and 2 units ofY for each unit of X. The contribution margins are P1.00 per unit of X, P1.50 unit of Y, and P3.00 per unit of Z. Fixed costs are P600,000. How many units of X would Thomas sell at the break-even point? a. 40,000 b. 120,000 per c. 360,000 d. 400,000 e. None of these; answer is 8. Day Mail Order Co. applied the high-low method of cost estimation to customer order data for the first four months of 2020. What is the estimated variable order filing cost component per order? Orders 1,200 1,300 1,800 1,700 Costs January February Р3,120 3,185 March 4,320 3,895 April a. P2.00 с. Р2.48 e. None of these; b. Р2.42 d. P2.50 answer is 9. Sender, Inc. estimates parcel mailing costs using data shown on the chart next page:
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