NUBD Co.'s break even sales are P528,000. The variable costs ratio to sales is 60%, while the net income percentage is 8%. Compute the following: 1. Margin of safety ratio 2. Actual sales in pesos 3. Margin of safety in pesos. 4. Fixed costs 5. Net Income 6. Degree of operating leverage

NUBD Co.'s break even sales are P528,000. The variable costs ratio to sales is 60%, while the net income percentage is 8%. Compute the following: 1. Margin of safety ratio 2. Actual sales in pesos 3. Margin of safety in pesos. 4. Fixed costs 5. Net Income 6. Degree of operating leverage

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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Question

NUBD Co.'s break even sales are P528,000. The variable costs ratio to sales is 60%, while the net income percentage is 8%.

Compute the following:

1. Margin of safety ratio

2. Actual sales in pesos

3. Margin of safety in pesos.

4. Fixed costs

5. Net Income

6. Degree of operating leverage

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