Cost Volume Profit Analysis Activity

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Cost Volume Profit Analysis Activity

Problem 1
Ligaya company have the following information for the month ended September 2019
Sales 480,000.00
Variable Cost 330,000.00
Contribution Margin 150,000.00
Fixed Cost 70,000.00
Net Income 80,000.00

1. Compute for the breakeven point in pesos


2. If Ligaya wants a profit of 180,000.00, what will be the required sales in order to meet
her desired profit?

Problem 2
Aero Company are selling umbrellas worth 150.00 pesos each and have a product
variable cost of 80.00 pesos and have a product fixed cost of 25,000.00 pesos. The
company has variable selling and administrative expenses of 20.00 pesos and have fixed
selling and admin expenses of 52,500.00. On the current month it has current sales of
2,600 units of umbrella

Required:
1. Compute for the breakeven pint in units
2. Compute for the breakeven point in pesos/sales
3. Make a contribution income statement
4. Compute for the margin of safety
5. Compute for the margin of safety ratio

Problem 3
Marky Company produces electric fans. The company have a total cost of 450,000.00.
the electric fans have 3 variants

Sales Price Variable Cost Sales Mix


Variant A 2,000.00 1,000.00 25%
Variant B 1,200.00 750.00 35%
Variant C 900.00 550.00 40%

Required:
1. Compute for the breakeven point in units
2. compute for the breakeven point in pesos/sales
Problem 4
Techie Company manufactures and sell cell phone products. The following are costs
involve in the manufacturing process. During the month its production and units sold is
at 1,000.

Direct Labor 6,500.00 Per unit


Administrative Expenses 170,000.00 Per month
Advertising Expense 500.00 Per unit
Marketing supervisor salary 40,000.00 Per month
Other selling Expenses 23,750.00 Per month
Direct Materials 10,500.00 Per unit
Variable factory overhead 4,250.00 Per unit
Fixed Factory Overhead 127,500.00 Per month

The cell phone are sold at 26,000.00 pesos each

Required
Compute for the following
1. Total variable cost
2. Total fixed cost
3. Total manufacturing/product cost
4. Period cost
5. Breakeven point in units
6. Breakeven point in sales/pesos
7. Make Contribution income statement

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