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MJP Corporation presently sells product Kuha Mo with the following related data:
Unit contribution margin P40
Variable cost ratio 75%
Total fixed costs P200, 000
Required:
Question 1: What would be the sales in pesos and in units if:
a. Profit before tax is P300, 000
b. Profit after tax of 40% is P300, 000
c. Profit rate before tax is 20% of sales
d. Unit profit margin before tax is P8
e. Profit before tax is 10% of CMR.
Discuss any TWO of the concepts or tools Fundamental of Cost Management and how you would recommend the company uses
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Calculate the profitability ratios that can be computed from the above information. Use the direct method to prepare the cash flows from operating activities section of a statement of cash flows.
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