Read the selection for questions 6-10. Junedyl is planning to run a coffee shop where he plans to sell each cup of coffee at P50.00. The fixed cost that is amounting to P40,000.00 includes all his expenses for the rent, wages, basic needs and others. So even if Junedyl will not be able to sell, he is still obliged to pay this amount. If it costs Junedyl an average of P10.00 for every cup of coffee which is allotted for the bulk of coffee beans, purified water and coffee filters, then: 6. What equation represents the variable cost (VC9 when x is the number of cups of coffee? а. VC = 5x b. VC = 10x с. VC = d. VC = 7. What is the break-even quantity? 50 cups of coffee 100 cups of coffee 500 cups of coffee 1,000 cups of coffee а. b. с. d. 8. Which of the following ordered pairs determine a break-even point? (500, 1000) (1000, 50000) (1500, 50000) (5000, 1000) a. b. с. d. 9. How much profit will he earn if he sells 500 cups? а. P20,000.00 b. P40,000.00 incur loss of P20,000.00 с. d. cannot be determined 10. How many cups of coffee must be sold to earn a profit of P50,000.00? 1,250 b. 1,500 a. с. 2,250 d. 2,500

Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter3: Cost-volume-profit Analysis
Section: Chapter Questions
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Read the selection for questions 6-10.
Junedyl is planning to run a coffee shop where he plans to sell each cup of
coffee at P50.00. The fixed cost that is amounting to P40,000.00 includes all his
expenses for the rent, wages, basic needs and others. So even if Junedyl will not be
able to sell, he is still obliged to pay this amount. If it costs Junedyl an average of
P10.00 for every cup of coffee which is allotted for the bulk of coffee beans, purified
water and coffee filters, then:
6. What equation represents the variable cost (VC) when x is the number of cups
of coffee?
а.
VC = 5x
b.
VC = 10x
5.
VC =
с.
d.
VC =
7. What is the break-even quantity?
50 cups of coffee
100 cups of coffee
500 cups of coffee
1,000 cups of coffee
а.
b.
с.
d.
8. Which of the following ordered pairs determine a break-even point?
(500, 1000)
(1000, 50000)
(1500, 50000)
(5000, 1000)
a.
b.
с.
d.
9. How much profit will he earn if he sells 500 cups?
а.
P20,000.00
b. P40,000.00
incur loss of P20,000.00
с.
d.
cannot be determined
10. How many cups of coffee must be sold to earn a profit of P50,000.00?
1,250
b. 1,500
а.
2,250
d. 2,500
с.
Transcribed Image Text:Read the selection for questions 6-10. Junedyl is planning to run a coffee shop where he plans to sell each cup of coffee at P50.00. The fixed cost that is amounting to P40,000.00 includes all his expenses for the rent, wages, basic needs and others. So even if Junedyl will not be able to sell, he is still obliged to pay this amount. If it costs Junedyl an average of P10.00 for every cup of coffee which is allotted for the bulk of coffee beans, purified water and coffee filters, then: 6. What equation represents the variable cost (VC) when x is the number of cups of coffee? а. VC = 5x b. VC = 10x 5. VC = с. d. VC = 7. What is the break-even quantity? 50 cups of coffee 100 cups of coffee 500 cups of coffee 1,000 cups of coffee а. b. с. d. 8. Which of the following ordered pairs determine a break-even point? (500, 1000) (1000, 50000) (1500, 50000) (5000, 1000) a. b. с. d. 9. How much profit will he earn if he sells 500 cups? а. P20,000.00 b. P40,000.00 incur loss of P20,000.00 с. d. cannot be determined 10. How many cups of coffee must be sold to earn a profit of P50,000.00? 1,250 b. 1,500 а. 2,250 d. 2,500 с.
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