Classification of Cost

BEP: (MULTIPLE PRODUCTS)
A) BSBA-FM, Inc. manufactures and sells products A, B, and C with unit selling
prices of P20, P40, and P40, and with unit variable costs of P12, P18, and P26
respectively. They are sold in the ratio of 4:1:3. Total fixed cost amounted to
P960,000. Compute the breakeven point in pesos and in units.
A ___ B ____ C____
Unit selling price P 20 P 40 P 40
Unit variable cost 12 18 26
Fixed cost P960,000
Sales mix 4 1 3
BEP Units and Pesos

A B C Total
Selling prices P 20 P40 P40

Variable costs 12 18 26
Contribution margin P8 P22 P14
Units sold per mix 4 1 3
Contribution margin per mix P 32 P22 P42 P96
Sales revenue per mix P80 P 40 P120 P240
CMRM = P 96 = 40%
P240
BES = FC = P960,000 = P2,400,000

CMRM 0.4
BEU = FC = P960,000 = 10,000 mixes

WCMPM P96
Computation of BEP Units and Pesos:
BEP Units BEP Sales

A: 10,000 mixes x 4 = 40,000 units @ P20 = P800,000
B: 10,000 mixes x 1 = 10,000 units @ P40 = 400,000
C: 10,000 mixes x 3 = 30,000 units @ P40 = 1,200,000
12,000 units P2,400,000
B) BSBA-FM-SATELLITE, Inc. manufactures and sells products C, D, E , F, and G with unit contribution margin of P
10, P 20, P30, P40, and P50, respectively. Total fixed costs amounted to P1,750,000 for the whole year. Sales mix
are 5:4:3:2:1, respectively. Compute the breakeven point in units and in pesos. Prove your answer assuming unit
selling prices are P20, P45, P50, P65, and P90, respectively.
C ___ D ___ E____ F ___ G____

Unit selling price P 20 P 45 P 50 P 65 P 90
Unit contribution margin 10 20 30 40 50
Fixed cost P1,750,000
Sales mix 5 4 3 2 1
BEP Units and Pesos

C D E F G
Total
Selling prices P 20 P45 P50 P65 P90

Variable costs 10 25 20 25 40
Contribution margin P 10 P20 P30 P40 P50
Units sold per mix 5 4 3 2 1
Contribution margin per mix P 50 P80 P90 P80
P50 P350
Sales revenue per mix P100 P 180 P150 P130 P90

P650
CMRM = P 350 = 53.8%

P 650
BES = FC = P1,750,000 = P3,250,000

CMRM 0.538
BEU = FC = P1,750,000 = 5,000 mixes

WCMPM P350
Computation of BEP Units and Pesos:
BEP Units BEP Sales

C: 5,000 mixes x 5 = 25,000 units @ P20 = P500,000
D: 5,000 mixes x 4 = 20,000 units @ P45 = 900,000
E: 5,000 mixes x 3 = 15,000 units @ P50 = 750,000
F: 5,000 mixes x 2 = 10,000 units @ P65 = 650,000
G: 5,000 mixes x 1 = 5,000 units @ P90 = 450,000
75,000 units P3,250,000
Proof:
Product
Total
C D E F G
Sales P500,000 P900,000 P750,000 P650,000 P450,000
3,250,000
Variable cost 250,000 500,000 300,000 250,000 200,000
1,500,000
Contribution margin 250,000 P400,000 P450,000 400,000 250,000
1,750,000
Fixed costs
1,750,000
Net Income
P -0- 0
Computations of Variable Costs:

C: 25,000 units @ P10 = P250,000
D: 20,000 units @ 25 = 500,000
E: 15,000 units @ 20 = 300,000
F: 10,000 units @ P25 = 250,000
G: 5,000 units @ 40 = 200,000
C) BSBA-MAIN, Inc. manufactures and sells products X, Y, and Z. Other information is

given below:
Products______________
X ___ Y ____ Z____
Unit selling price P 40 P 20 P 40
Unit variable cost 20 10 30
Fixed cost P 20,000 P 10,000 P 22,000
Sales mix 3 2 5
a. BEP Units and Pesos

X Y Z Total
Selling prices P 40 P20 P40

Variable costs 20 10 30
Contribution margin P 20 P10 P10
Units sold per mix 3 2 5
Contribution margin per mix P 60 P 20 P50 P130
Sales revenue per mix P120 P 40 P200 P360
CMRM = P 130 = 36%

P360
BES = FC = P52,000 = P144,000

CMRM 0.36
BEU = FC = P52,000 = 400 mixes

WCMPM P130
a. Sales in units and pesos to earn a profit before tax of P312,000.
SDPBT =FC + DPBT = P52,000+P312,000 = P1,008,000

CMRM 0.36
SDPBTU =FC+DPBT = P364,000 = 2,800 mixes
WCMPM P130
Computation of Sales Units and Pesos:
Sales Units Peso Sales
X: 2,800 mixes x 3 = 8,400 units @ P40 = P336,000
Y: 2,800 mixes x 2 = 5,600 units @ 20 = 112,000
Z: 2,800 mixes x 5 = 14,000 units @ 40 = 560,000
28,000 units P1,008,000
b. Sales un units and pesos to earn a net profit after tax of P424,320. Income
tax rate is 32%. Prove your answer.
SDPAT =FC + DPBT =P52,000 + P424,320 = P1,872,000

(1-TR) (1-32%)
CMRM 0.36
SDPATU =FC+DPBT = P364,000 = 2,800 mixes

CMPM P130
Computation of Sales Units and Pesos:
Sales Units Peso Sales
X: 2,800 mixes x 3 = 8,400 units @ P40 = P336,000
Y: 2,800 mixes x 2 = 5,600 units @ 20 = 112,000
Z: 2,800 mixes x 5 = 14,000 units @ 40 = 560,000
28,000 units P1,008,000
Proof:
Product
Total
X Y Z
Sales P336,000 P112,000 P560,000 P1,008,000
Variable cost 168,000 56,000 420,000 644,000
Contribution margin P168,000 P56,000 P140,000 364,000
Fixed costs 52,000
Profit before tax P312,000
Income tax, 32% 99,840
Net Profit after tax P212,160

Classification of Cost

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BEP: (MULTIPLE PRODUCTS)

BEP Units and Pesos

Selling prices P 20 P40 P40

Sales revenue per mix P80 P 40 P120 P240

BES = FC = P960,000 = P2,400,000

BEU = FC = P960,000 = 10,000 mixes

BEP Units BEP Sales

C ___ D ___ E____ F ___ G____

BEP Units and Pesos

Selling prices P 20 P45 P50 P65 P90

Sales revenue per mix P100 P 180 P150 P130 P90

CMRM = P 350 = 53.8%

BES = FC = P1,750,000 = P3,250,000

BEU = FC = P1,750,000 = 5,000 mixes

BEP Units BEP Sales

75,000 units P3,250,000

Computations of Variable Costs:

C) BSBA-MAIN, Inc. manufactures and sells products X, Y, and Z. Other information is

a. BEP Units and Pesos

Selling prices P 40 P20 P40

Sales revenue per mix P120 P 40 P200 P360

CMRM = P 130 = 36%

BES = FC = P52,000 = P144,000

BEU = FC = P52,000 = 400 mixes

a. Sales in units and pesos to earn a profit before tax of P312,000.

SDPBT =FC + DPBT = P52,000+P312,000 = P1,008,000

SDPAT =FC + DPBT =P52,000 + P424,320 = P1,872,000

SDPATU =FC+DPBT = P364,000 = 2,800 mixes

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