4.18 The Punch Bowl Corp. produces and sells two products, P and B. In prior year, Punch Bowl has sold 3 units of product P for every unit of product B. Selected data on these products show the following: P В Unit selling price Unit variable cost Total fixed cost of P600,000 P10.00 P15 7.00 P 9 For the coming year, the sales mix is expected to change so that 2 units of product B will pe sold for every unit of product P

Principles of Accounting Volume 2
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Author:OpenStax
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Chapter10: Short-term Decision Making
Section: Chapter Questions
Problem 14MC: A company produces two products. E and F in batches of 100 units. The production and cost data are:...
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For the coming year, the sales mix is expected to change so that 2 units of product B will be sold for every unit of product P

Instructions:

  1. Determine the number of units for each product that must be sold in order to recover the total fixed cost in prior year.
  2. Determine the number of units for each product that must be sold in the coming year in order to break even.
  3. Determine the number of units for each product that must be sold in the coming year in order to realized a profit of P500,000 before tax.
4.18
The Punch Bowl Corp. produces and sells two products, P and B. In prior year, Punch
Bowl has sold 3 units of product P for every unit of product B. Selected data on these products
show the following:
В
Unit selling price
Unit variable cost
Total fixed cost of P600,000
P10.00
P15
7.00
P 9
For the coming year, the sales mix is expected to change so that 2 units of product B will
be sold for every unit of product P
Transcribed Image Text:4.18 The Punch Bowl Corp. produces and sells two products, P and B. In prior year, Punch Bowl has sold 3 units of product P for every unit of product B. Selected data on these products show the following: В Unit selling price Unit variable cost Total fixed cost of P600,000 P10.00 P15 7.00 P 9 For the coming year, the sales mix is expected to change so that 2 units of product B will be sold for every unit of product P
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