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Junghwan Corporation has the Following revenue and cost characteristics on their only

Junghwan Corporation has the Following revenue and cost characteristics on their only

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 3BE
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e. Decrease of Php 30,000 in fixed costs f. Decrease in variable costs of Php 0.20 g. Decrease in variable costs of Php 0.60 and 20% increase in selling price. h. 20% decrease in fixed costs and 20% increase in variable costs. i. Decrease in variable costs by 20% and increase in fixed costs by 20%. j. 5% increase in selling price, 10% decrease in sales volume, 20% increase in variable costs and 10% decrease in fixed costs.
Transcribed Image Text:e. Decrease of Php 30,000 in fixed costs f. Decrease in variable costs of Php 0.20 g. Decrease in variable costs of Php 0.60 and 20% increase in selling price. h. 20% decrease in fixed costs and 20% increase in variable costs. i. Decrease in variable costs by 20% and increase in fixed costs by 20%. j. 5% increase in selling price, 10% decrease in sales volume, 20% increase in variable costs and 10% decrease in fixed costs.
Junghwan Corporation has the following revenue and cost characteristics on their only product: Selling Price per Unit Php 6.00 Variable Cost per Unit 4.20 Annual Fixed Costs 360,000.00 Annual Volume 270,000 units Required: 1. Determine the following: a. Contribution Margin per unit and ratio b. Break-even point in units and in peso c. Net profit at the current operating level 2. For each of the following independent cases, determine the new contribution margin ratio, break-even point in pesos, and net profit. a. 5% increase in selling price b. 20% increase in variable costs c. 50% increase in fixed costs d. 5% increase in sales and production volume
Transcribed Image Text:Junghwan Corporation has the following revenue and cost characteristics on their only product: Selling Price per Unit Php 6.00 Variable Cost per Unit 4.20 Annual Fixed Costs 360,000.00 Annual Volume 270,000 units Required: 1. Determine the following: a. Contribution Margin per unit and ratio b. Break-even point in units and in peso c. Net profit at the current operating level 2. For each of the following independent cases, determine the new contribution margin ratio, break-even point in pesos, and net profit. a. 5% increase in selling price b. 20% increase in variable costs c. 50% increase in fixed costs d. 5% increase in sales and production volume
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