Reference no: EM132633464

Oslo Co.'s industrial photo-finishing division incurred the following expenses last year:

                                                Variable                Fixed

Direct materials                          P200,000

Direct labor                                 150,000

Factory overhead                              70,000                P 42,000

Selling and administrative                       30,000                48,000

Total                                                 P450,000             P 90,000

During the year, the division sold 300,000 photo-prints for P2.00 each.

Problem 1. How many photo-prints did the division have to sell to break even?

a. 180,000 b. 120,000 c. 90,000 d. 60,000

Problem 2. What was the division's total contribution margin?

a. P250,000 b. P180,000 c. P150,000 d. P60,000

Problem 3. If the division produces and sells 350,000 photo-prints, its total expenses would be:

a. P525,000 b. P540,000 c. P615,000 d. P630,000.