The CVP income statements of Peace and Shalom Company are available below. The two companies belong in the same manufacturing industry and coincidentally, both had the same operating income in 2022: Sales Variable costs Peace Shalom 300,000 300,000 150,000 120,000 150,000 180,000 90,000 120,000 60,000 Contribution margin Fixed costs Operating income 60,000 Amounts must be in whole numbers. Example: 88,000 or (88,000) Format of percentages: 88% Format of units: 88,000 UNITS (in whole numbers, one space after the number of units) Words must be in capital letters. Which company has to sell more units to earn profit? Use the company name only (underlined above) If the selling price of the two companies is P100 per unit, how many units shall your answer above sell to break- even?

The CVP income statements of Peace and Shalom Company are available below. The two companies belong in the same manufacturing industry and coincidentally, both had the same operating income in 2022: Sales Variable costs Peace Shalom 300,000 300,000 150,000 120,000 150,000 180,000 90,000 120,000 60,000 Contribution margin Fixed costs Operating income 60,000 Amounts must be in whole numbers. Example: 88,000 or (88,000) Format of percentages: 88% Format of units: 88,000 UNITS (in whole numbers, one space after the number of units) Words must be in capital letters. Which company has to sell more units to earn profit? Use the company name only (underlined above) If the selling price of the two companies is P100 per unit, how many units shall your answer above sell to break- even?

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter14: Capital Structure Management In Practice

Section: Chapter Questions

Problem 2P

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