Cost Volume Profit Analysis

The Insular Corporation sells two products, D and W at a rate of 2 units and 3 units respectively.
The following data are available:

D W
Unit Selling Price ₱ 10 ₱ 5
Unit Variable Costs 6 3
Total Fixed Cost ₱ 420,000

Required: Determine:
1 Weighted contribution margin per unit.
2 Break-even point in units (combined)
3 Weighted contribution margin ratio
4 Break-even point in sales pesos (combined)
5 Break-even point in sales pesos for:
1 Product D
2 Product W
Lor Inc. produces only two products, A and B. These account for 60% ad 40%
of the total sales pesos of Lor's respectively. Variable costs as a percentage of
sales pesos are 60% for A and 85% for B. Total Fixed costs are P150,000. There
are no other costs.

Required: Compute
1 The weighted contribution margin ratio
2 The break-even point in sales pesos
3 The sales pesos necessary to generate a net income of P9,000 if total
fixed costs will increase by 30%
60% ad 40%
percentage of
150,000. There