Green Thumb makes small plant stands that sell for P25 each. The company's annual level of production and sales is 120,000 units. In addition to P430,500 of fixed manufacturing overhead and P159,050 of fixed administrafive expenses, the following per-unit costs have been determined for each plant stand: Direct material P 6.00 3.00 Variable manufacturing overhead Direct labor 0.80 Variable selling expense 2.20 P12.00 == Unit variable cost Required: 1. Calculate the unit contribution margin and contribution margin percentage for a plant stand. 2 Determine the breakeven point in terms of number of plant stands. 3 Determine the breakeven sales in pesos. A Determine Green Thumb's margin of safety in units, in peso sales and as a percentage. 5. How many plant stands must the company sell to earn a pre-tax profit of P996.450. 6. If the company wants to eam an after-tax profit of P657,800 and is subject to a 20% tax rate, how many units must be sold?
Green Thumb makes small plant stands that sell for P25 each. The company's annual level of production and sales is 120,000 units. In addition to P430,500 of fixed manufacturing overhead and P159,050 of fixed administrafive expenses, the following per-unit costs have been determined for each plant stand: Direct material P 6.00 3.00 Variable manufacturing overhead Direct labor 0.80 Variable selling expense 2.20 P12.00 == Unit variable cost Required: 1. Calculate the unit contribution margin and contribution margin percentage for a plant stand. 2 Determine the breakeven point in terms of number of plant stands. 3 Determine the breakeven sales in pesos. A Determine Green Thumb's margin of safety in units, in peso sales and as a percentage. 5. How many plant stands must the company sell to earn a pre-tax profit of P996.450. 6. If the company wants to eam an after-tax profit of P657,800 and is subject to a 20% tax rate, how many units must be sold?
Chapter10: Short-term Decision Making
Section: Chapter Questions
Problem 7PB: Remarkable Enterprises requires four units of part A for every unit of Al that it produces....
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