12 NUBD Company is a medium-sized manufacturer of lamps. During 2021, a new line called"Excellence" was made available to NUBD's customers. The break-even point for sales ofExcellence is P400,000 with a contribution margin of 40%. Assuming that the operating profitfor the Excellence line for 2021 amounted to P200,000, total sales for 2021 amounted to *Do not use money sign (P). Sample format: 111,111

Solution: Fixed costs = Breakeven sales * CM ratio = P400,000 * 40% = P160,000

Answered: NUBD Company is a medium-sized…

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter16: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 16E

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