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Determine the total amount of expected increase

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Reference no: EM133188359

Question - Spinda Inc., a manufacturer of sewing threads has supplied the following information:

Spools produced and sold 350,000 units

Sales revenue P2,836,000

Variable Manufacturing Expenses P1,173,500

Fixed Manufacturing Expenses P439,600

Variable Selling & Administrative Expenses P612,500

Fixed Selling & Administrative Expenses P376,400

Required -

1. Determine the company's CONTRIBUTION MARGIN RATIO?

2. Determine the company's BREAK-EVEN POINT in unit sales?

3. If the company can increase its sales volume by 10%, Determine the total amount of expected increase in net operating income will be?

Reference no: EM133188359

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