1. Jo Co.

sells its only product for P60 per unit and incurs the ff variable cost per unit:
Direct material P16, Direct labor P12, Manufacturing overhead P7 with the Total Variable Manufacturing Overhead
of P35; selling expenses worth P5, therefore a Total Variable Cost of 40.
Jo’s annual fixed costs are P880,000. If prime cost increased by 20% and all other values remained the same, what
would be Jo’s CONTRIBUTION MARGIN RATIO?

2. A Co. plans to market a new product. Based on its market studies, A estimates that it can sell 5,500 units in 2017.
The selling price will be P2 per unit. Variable cost is estimated to be 40% of the selling price. Fixed cost is estimated
to be P6,000. What is the breakeven point?

3. Based on a sales forecast of P6,000,000, B, Inc. prepared the ff estimated data:

Direct Materials 1,600,000 (v); direct labor 1,400,000 (v); Factory overhead 600,000 (v), 900,000 (f); selling expenses
240,000 (v); 360,000 (f); administrative expenses 60,000 (v), 140,000 (f)
What would be the amount of peso sales at the breakeven point?

4. The ff data refer to CVP relationship of A, Co.: Breakeven point in units 1,000, Variable Cost per unit 250; Total fixed
cost 75,000. How much will be contributed to operate income by the 1,001st unit sold?

5. The present breakeven sale of B co. is P550,000 per year. It is computed that if the fixed cost will go up by P60,000
the sales required to breakeven will also increase to P700,000 without any change in the selling price per unit and on
the variable expenses. How much is total fixed cost before the increase of P60,000?

6. How much will income change if a company makes an advertising campaign given the ff data: Cost of Advertising
Campaign P25,000; Increase in Sales P60,000; Variable expense as a % of sales 42%.

7. S Co. is planning to sell 200,000 units of product F. the fixed cost is P400,000 and the variable cost is 60% of the
selling price. In order to realize a profit of after tax of 70,000, what should be the selling price per unit if the tax rate
is 30%?

8. Vivian Co sells sets of encyclopedias. Vivian sold 4,000 sets last year at P250 a set. If the variable cost per set was
P175 and the fixed cost were P100,000, what is Vivian’s degree of operating leverage?

9. Machine X has fixed cost of P225,000 and a variable cost of P20. Machine Y has fixed cost of P300,000 annd a
variable cost of P14. What is the indifference point in units?

10. K Co sells Product A, B, and C. K sells 3 units of A for each unit of C and 2 units of B for each unit of A. the
contribution margin arevP1 per unit of A, P1.50 per unit of B and P3 per unit of C. fixed cost are P600,000. How
many units of A would Kris sell at breakeven point?