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Guiller Company's projected profit for the coming year follows TOTAL PER UNIT Sales Variable costs Contribution margin Fixed cost P2,480,000 1.488.000 992,000 626,400 P 365,600 P 20.00 12.00 P 8.00 Operating income Required 1.Compute the break-even point in units 2.Compute the break-even point in pesos 3.Compute the contribution margin ratio 4.Using the projected sales for the coming year, compute the margin of safety and- margin of safety ratio.

Guiller Company's projected profit for the coming year follows TOTAL PER UNIT Sales Variable costs Contribution margin Fixed cost P2,480,000 1.488.000 992,000 626,400 P 365,600 P 20.00 12.00 P 8.00 Operating income Required 1.Compute the break-even point in units 2.Compute the break-even point in pesos 3.Compute the contribution margin ratio 4.Using the projected sales for the coming year, compute the margin of safety and- margin of safety ratio.

Managerial Accounting
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 2BE: Contribution margin Waite Company sells 250,000 units at 120 per unit. Variable costs are 78 per...
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Subject: cost accounting

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Guiller Company's projected profit for the coming year follows TОTAL PER UNIT Sales Variable costs Contribution margin Fixed cost P 20.00 P2,480,000 1.488,000 992,000 626,400 P 365.600 12.00 P 8.00 Operating income Required 1.Compute the break-even point in units. 2.Compute the break-even point in pesos 3.Compute the contribution margin ratio 4.Using the projected sales for the coming year, compute the margin of safety and - margin of safety ratio.
Transcribed Image Text:Guiller Company's projected profit for the coming year follows TОTAL PER UNIT Sales Variable costs Contribution margin Fixed cost P 20.00 P2,480,000 1.488,000 992,000 626,400 P 365.600 12.00 P 8.00 Operating income Required 1.Compute the break-even point in units. 2.Compute the break-even point in pesos 3.Compute the contribution margin ratio 4.Using the projected sales for the coming year, compute the margin of safety and - margin of safety ratio.
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