18. The Disney Company's breakeven sales is P400,000 at a certain level of fixed costs. When such fixed costs are increased by P30,000, the breakeven sales will be P520,000. The variable cost ratio is A. 76.9% B. 75% C. 28.6% D. 25%

18. The Disney Company's breakeven sales is P400,000 at a certain level of fixed costs. When such fixed costs are increased by P30,000, the breakeven sales will be P520,000. The variable cost ratio is A. 76.9% B. 75% C. 28.6% D. 25%

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter6: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 23E

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Concept explainers

Pricing

Pricing is used as a term in finance and economics, pricing is the process of fixing a value for a product or a service. Pricing establishes a value for a product or service that the customer has to pay. A business can choose from different strategies while deciding to set prices.

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18. The Disney Company's breakeven sales is P400,000 at a certain level
of fixed costs. When such fixed costs are increased by P30,000, the
breakeven sales will be P520,000. The variable cost ratio is
A. 76.9%
B. 75%
C. 28.6%
D. 25%
19. Variable cost ratio is 60%. While breakeven ratio is 65%. Net income is
P42,000. Fixed cost must be
A. P 78,000
B. P 22,615
C. P 63,000
OD. P 65,000

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