Reference no: EM133185741
Questions -
Q1. MMM Enterprises produces and sells products XY and makes available to you the following data:
Unit sales price P80
Unit variable cost P50
Total fixed cost P600,000
Units sold P45,000
What will be the Contribution Margin Ratio?
a. 3.75
b. none of the above
c. 37.50
d. 35.70
Q2. MMM Enterprises produces and sells products XY and makes available to you the following data:
Unit sales price P80
Unit variable cost P50
Total fixed cost P600,000
Units sold P45,000
What will be the New Contribution Margin Ratio if the unit sales price increases by 20%?
a. None of the above
b. 49.72%
c. 47.92%
d. 46.92%
Q3. MMM Enterprises produces and sells products XY and makes available to you the following data:
Unit sales price P80
Unit variable cost P50
Total fixed cost P600,000
Units sold P45,000
What would be the new Unit Contribution Margin if the unit sales price increases by 20%?
a. P45
b. P42
c. None of the above
d.P40
Q4. MMM Enterprises produces and sells products XY and makes available to you the following data:
Unit sales price P80
Unit variable cost P50
Total fixed cost P600,000
Units sold P45,000
How much is the operating profit?
a. P1,350,000
b. P1,600,000
c. P 750,000
d. None of the above
Q5. Isaiah company produces a product that can be sold for P250,000 at an intermediate stage. If Isaiah finishes the products, they will incur P75,000 of additional material costs and another P15,000 in labor and overhead costs. When finished, Isaiah will be able to sell the products for P350,000. Which of the following answer is correct?
a. Finished the product because profit will increase by 10,000
b. Finish the product because profit will increase by P25,000
c. Finish the product because profit will increase by P12,500
d. Sell now
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