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LW4 Management-Accounting Activity

1. The document provides two problems related to calculating breakeven points for manufacturing businesses. The first problem asks to calculate the breakeven point in units and pesos for a business with fixed costs of P15,000, variable costs of P7.50 per unit, and a selling price of P15 per unit. The second problem provides sales, variable costs, contribution margins, units sold, and fixed costs for three products (A, B, C) produced by Babe Manufacturing Co. and asks to calculate the breakeven level of sales.

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Jamel torres
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95 views

LW4 Management-Accounting Activity

1. The document provides two problems related to calculating breakeven points for manufacturing businesses. The first problem asks to calculate the breakeven point in units and pesos for a business with fixed costs of P15,000, variable costs of P7.50 per unit, and a selling price of P15 per unit. The second problem provides sales, variable costs, contribution margins, units sold, and fixed costs for three products (A, B, C) produced by Babe Manufacturing Co. and asks to calculate the breakeven level of sales.

Uploaded by

Jamel torres
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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MANAGEMENT ACCOUNTING

Lecture Week 4 Activity

Solve the following problems.


1. Mr. A has a manufacturing business that is involved in manufacturing and selling a single
product. The annual fixed expenses to run the business are P15,000 and variable expenses are
P7.50 per unit. The sales price of the product is P15 per unit. Compute the breakeven point in
units and peso.

2. The following information were taken from the records of Babe Manufacturing Co. for the period
ending December 31, 2014. Compute for the breakeven level of sales.

COMPANY
A B C
Selling Price 60 80 40
Variable Cost 20 30 20
Contribution Margin 40 50 20

No. of Units Sold 2,000 3,000 5000

Fixed costs 40,000 40,000 40,000

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