User Account

All Pages

Compute the break-even point for the company

Assignment Help Accounting Basics
Reference no: EM131810277

Question - Olongapo Sports Corporation is the distributor in the Philippines of two premium golf balls-the Flight Dynamic and the Sure Shot. Monthly sales, expressed in pesos (P), and the contribution margin ratios for the two products follow:

Product

Flight Dynamic

Sure Shot

Total

Sales

P 690,000

P 310,000

P 1,000,000

CM ratio

70%

72%

?

Fixed expenses total P573,500 per month.

Requirement 1: Prepare a contribution format income statement for the company as a whole.

Requirement 2: Compute the break-even point for the company based on the current sales mix.

Requirement 3: If sales increase by P41,000 a month, by how much would you expect net operating income to increase?

Reference no: EM131810277

Questions Cloud

Production machinery and depreciated : A mining corporation purchased $120,000 of production machinery and depreciated it using SOYD depreciation, a 5-year depreciable life, and zero salvage value.
Compute the after-tax rate of return : Compute the after-tax rate of return for this investment situation, assuming a 46% incremental tax rate.
Determine the unit costs of production : Show the assignment of costs to units transferred out and in process
What proportion of bags of cookies give rise to complaints : Suppose that customers complain if one or more of the cookies in a bag contains no raising. Over the long run, about what proportion of bags of cookies.
Compute the break-even point for the company : Fixed expenses total P573,500 per month. Compute the break-even point for the company based on the current sales mix
Calculate the ending balance of the operating overhead : Calculate the ending balance of the Operating Overhead account for November
Determine by present worth analysis : The corporation wants a 15% after-tax rate of return on its investments. Determine by present worth analysis whether this project should be undertaken.
Annual cash flow analysis : If the firm wants a 9% after-tax rate of return and its combined incremental income tax rate is 34%, determine by annual cash flow analysis whether
Appropriate distribution of number of each kind of raisin : Suppose raisin muffins from the recycling bakery have an average of 3 fresh raisins and 2 rotten raisins per muffin.

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Theory of interest - term structure of interest rates

Term Structure of Interest Rates

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd