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ACCT 02 FE Solution

The document contains 5 examples calculating contribution margin, break even analysis, and sales mix ratios. It shows calculations for sales mix, contribution margin, fixed and variable costs, break even points, and margin of safety across multiple products and time periods.

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Vince Cee
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20 views1 page

ACCT 02 FE Solution

The document contains 5 examples calculating contribution margin, break even analysis, and sales mix ratios. It shows calculations for sales mix, contribution margin, fixed and variable costs, break even points, and margin of safety across multiple products and time periods.

Uploaded by

Vince Cee
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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1 X Y Z Total

Sales Mix Ratio 3 6 1 10


Contribution margin per unit 1 1.5 3
Total 3 9 3 15

Total CM 15
divided by total sales mix 10
Composite UCM 1.50

FC 600,000
divided by Composite UCM 2
Break-even sales in units 400,000
Sales mix ratio 3/10 6/10 1/10
Break-even sales in units 120,000 240,000 40,000

Checking:
Break-even sales in units 120,000 240,000 40,000
Contribution margin per unit 1 1.50 3
Total CM = Fixed Cost 120,000 360,000 120,000 600,000

2 Sales (P5,000 x 110%) 5,500


Less: Variable Expenses (P1,750 x 110%) (1,925)
Less: Fixed expenses (P2,000 x 110%) (2,200)
Net income 1,375

3 Per unit Units Amount


Sales 15 500 7,500
Less: Variable expenses 9 500 4,500
Contribution margin 6 500 3,000 Decrease in FC
divided by Fixed expenses 12,000
Percentage decrese in Fixed expenses 25%

4 Product A Product B Product C Total


Revenues 100,000 200,000 200,000 500,000
Variable costs (40,000) (140,000) (80,000)
CM 60,000 60,000 120,000 240,000

CM ratio 60% 30% 60%


Sales mix ratio 1/5 2/5 2/5
Average CMR 12% 12% 24% 48%

Fixed costs 200,000


Divided by average CMR 48%
Break-even sales in pesos 416,667

Total revenues 500,000


Less: Break-even sales (416,667)
Margin of safety 83,333

5 X Y
Sales mix ratio 70% 30%
x CMR (1-VC as percentage of sales) 40% 20%
Average CMR 28% 6% 34%

Fixed costs (P340,000 x 10%) 374,000


Desired profit 34,000
Total 408,000
divided by Average CMR 34%
Desired pesos sales 1,200,000

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