To be able to answer the following questions, kindly refer to the problem below:

ABC Co. provided the following information related to the production of a single product
Selling price per unit                              P        250
Total fixed cost                                         P150,000
Contribution margin percentage           40%
Desired profit after tax                          P250,000
Income tax rate 20%
 
Q: How much should be the actual peso sales to realize the desired profit?

Select one:
a.
P462,500
b.
P1,156,250
c.
P375,000
d.
P693,750

Businesses are established because owners are just after the break-even point.

Select one:
True

False

To be able to answer the following questions, kindly refer to the problem below:
ABC Co. provided the following information related to the production of a single product
Selling price per unit                              P        250
Total fixed cost                                         P150,000
Contribution margin percentage           40%
Desired profit after tax                          P250,000
Income tax rate 20%
 
Q: What is the amount of income tax?

Select one:
a.
P62,500
b.
P312,500
c.
P375,000
d.
P462,500

To be able to answer the following questions, kindly refer to the problem below:
ABC Co. provided the following information related to the production of a single product
Selling price per unit                              P        250
Total fixed cost                                         P150,000
Contribution margin percentage           40%
Desired profit after tax                          P250,000
Income tax rate 20%
 
Q: What is the contribution margin per unit?

Select one:
a.
P150
b.
P250
c.
P50
d.
P100

To be able to answer the following questions, kindly refer to the problem below:
ABC Co. provided the following information related to the production of a single product
Selling price per unit                              P        250
Total fixed cost                                         P150,000
Contribution margin percentage           40%
Desired profit after tax                          P250,000
Income tax rate 20%
 
Q: What should be the unit sales to break-even?

Select one:
a.
2,500 units
b.
4,625 units
c.
1,500 units
d.
3,750 units

To be able to answer the following questions, kindly refer to the problem below:
ABC Co. provided the following information related to the production of a single product
Selling price per unit                              P        250
Total fixed cost                                         P150,000
Contribution margin percentage           40%
Desired profit after tax                          P250,000
Income tax rate 20%
 
Q: What is the amount of total variable cost at desired profit calculation?

Select one:
a.
P693,750
b.
P462,500
c.
P312,500
d.
P225,000

Clear my choice
Check

To be able to answer the following questions, kindly refer to the problem below:
ABC Co. provided the following information related to the production of a single product
Selling price per unit                              P        250
Total fixed cost                                         P150,000
Contribution margin percentage           40%
Desired profit after tax                          P250,000
Income tax rate 20%
 
Q: What should be the actual unit sales to realize the desired profit?

Select one:
a.
4,625 units
b.
1,500 units
c.
3,750 units
d.
2,500 units

Margin of Safety is the point wherein actual or planned sales maybe reduced without incurring a
loss

Select one:
True

False

The Graphic Approach is the widely used method in calculating the break-even point.

Select one:
True
 False

Opportunity costs are the potential benefit that is given up when one alternative is selected over
another.

Select one:
True

False
The Graphic Approach is the widely used method in calculating the break-even point.

Select one:
True

False

Product Costs can either be presented in the balance or income statement

Select one:
True

False

It is the point of activity level where total revenue is equal to total cost

Select one:
a.
margin of safety
b.
split-off point
c.
break-even point
d.
contribution margin

A  ____ cost increases or decreases in intervals as activity changes

Select one:
a.
variable cost
b.
mixed cost
c.
fixed cost
d.
step cost

Based on the following given numbers, compute the fixed cost element (to the nearest whole
peso).

Select one:
a.
P364
b.
P411
c.
P138
d.
P225

Period Costs are also inventoriable costs.

Select one:
True

False

Budgeted Cost is the amount that is anticipated to be incurred in the future

False

Product Costs are treated as outright expenses.

Select one:
True

False
Check

This analysisfocuses on how profits are affected by selling prices, sales volume, unit variable
costs, total fixed costs, and mix of products sold

Select one:
a.
High-Low Method
b.
Value Chain Analysis
c.
Least Square Regression Method
d.
Cost-Volume-Profit Analysis

Product Costs are always presented in the income statement as part of cost of goods sold.

Select one:
True

False
Within the relevant range, the two main cost behaviors are direct and indirect costs.

Select one:
True

False
Check