Reference no: EM133116583
Question - Delen Company's income statement is shown below.
|
|
Total
|
Per Unit
|
|
Sales (30,000 units)
|
150,000
|
5.00
|
|
Less: Variable Costs
|
90,000
|
3.00
|
|
Contribution Margin
|
60,000
|
2.00
|
|
Less: Fixed Costs
|
50,000
|
|
|
Net Income
|
10,000
|
|
Required -
1. Compute the contribution margin ratio, breakeven point in pesos, and operating income.
2. Calculate the new contribution margin ratio, breakeven point in pesos and operating profit under each of the changes below:
a. Unit sales price increases by 15%.
b. Unit variable costs decrease by 25%.
c. Total fixed costs increase to Php 80,000.
d. Unit sales price decreases by 20% and the sales volume increases by 20%.
e. The selling price increases by Php0.50 per unit, fixed costs increase by Php 10,000 and the sales volume decreases by 5%.
f. Variable costs increase by Php 0.20 per unit, the selling price increases by 12%, and the sales volume decreases by 10%.