Professional Documents
Culture Documents
ANALYSIS
Let us say:
Unit Sales Price
Unit Variable Costs
P200
120
400,000
8,000
b.
c.
Margin of safety in units and in pesos, and the margin of safety ratio
Unit Prices
Amount
Ratio
Sales
8,000
200
1,600,000
100
8,000
120
960,000
60
Contribution Margin
8,000
80
640,000
40
400,000
Operating Income
240,000
Percentage
Budgeted Sales
(8,000 units x 200)
1,600,000
100.00
1,000,000
62.50
600,000
37.50
Margin of Safety
P400
240
P800,000
() =
800,000:400,000
160
= 7,500
= 7,500 400
= 3,000,000
:(1 )
() =
=
480,000
0.60
800,000:
160
= 10,000
= 10,000 400
= 4,000,000
20% of Sales
=
=
800,000
0.40;0.20
= 4,000,000
=
=
800,000
160 ;25
= 5,926
P 400
P 600
P700
100
350
500
P 795,000
Compute the:
a. Composite Break-even Point (CBEP) in units and pesos
b. Allocated CBEP
c. Sales per mix
795,000
265
= 3,000
=
=
795,000
50.9615%
= 1,560,000
Allocated CBEP
CBEP Allocation
A = 3,000 x 5/10 = 1,500
B = 3,000 x 3/10 =
900
C = 3,000 x 2/10 =
600
CBEP
3,000
795,000
2,650