The following information pertain to questions 10 through 13. Hoopie Company sells a single product. The company's sales and expenses for the recent month follow: Total Per unit Sales P600,000 P40 Less: Variable expenses Contribution margin Less: Fixed expenses Net operating income 420,000 180,000 28 P12 150,00 P30.000 10. What is the monthly break-even point in units sold? b. 12,500 units c. 15,200 units d. 11,000 units a. 12, 000 units 11. How many units would have to be sold each month to earn a minimum target profit of P18,000? a. 14,500 c. 14,000 b. 12,000 d. 14,700 12. What is the company's margin of safety in percentage terms? a. 15% c. 25% b. 20% d. 16.7% 13. If the monthly sales increase by P80,0000 and there is no change in fixed expenses, by how much you expect monthly net operating income to increase? a. P20,000 b. Р24,500 c. P24,000 d. 42,000

Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter3: Cost-volume-profit Analysis
Section: Chapter Questions
Problem 4PB: West Island distributes a single product. The companys sales and expenses for the month of June are...
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The following information pertain to questions 10 through 13. Hoopie Company sells a single product. The
company's sales and expenses for the recent month follow:
Total
Per unit
Sales
P600,000
P40
420,000 _
Less: Variable expenses
Contribution margin
Less: Fixed expenses
Net operating income
28
P12
180,000
150,00
P30,000
10. What is the monthly break-even point in units sold?
b. 12,500 units
c. 15,200 units
a. 12, 000 units
d. 11,000 units
11. How many units would have to be sold each month to earn a minimum target profit of P18,000?
a. 14,500
c. 14,000
b. 12,000
d. 14,700
12. What is the company's margin of safety in percentage terms?
a. 15%
ь. 20%
с. 25%
d. 16.7%
13. If the monthly sales increase by P80,0000 and there is no change in fixed expenses, by how much you
expect monthly net operating income to increase?
a. P20,000
ь. Р24,500
с. Р24,000
d. 42,000
Transcribed Image Text:The following information pertain to questions 10 through 13. Hoopie Company sells a single product. The company's sales and expenses for the recent month follow: Total Per unit Sales P600,000 P40 420,000 _ Less: Variable expenses Contribution margin Less: Fixed expenses Net operating income 28 P12 180,000 150,00 P30,000 10. What is the monthly break-even point in units sold? b. 12,500 units c. 15,200 units a. 12, 000 units d. 11,000 units 11. How many units would have to be sold each month to earn a minimum target profit of P18,000? a. 14,500 c. 14,000 b. 12,000 d. 14,700 12. What is the company's margin of safety in percentage terms? a. 15% ь. 20% с. 25% d. 16.7% 13. If the monthly sales increase by P80,0000 and there is no change in fixed expenses, by how much you expect monthly net operating income to increase? a. P20,000 ь. Р24,500 с. Р24,000 d. 42,000
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