31.

Manufacturing Overhead 5,589,720

Variable Production Cost 3,732,480
Fixed Cost 9,331,200

Sales Price 40
Variable Production Cost 22
Commission (2)
Contribution Margin 16

BEP = Fixed Cost / Contribution Margin

= 9,331,200/ 16
= 583,200 units.

35. = Total Fixed Expense / Units

= 150,000 / 1,000
= 150

40. Total peso sales required 120,000 / (.25-0.1) 800,000

Less prior sales 400,000

Required increase in sales 400,000

41. Sales (500,000 x 1.10) 550,000

Variable Cost 300,000

Contribution Margin 250,000

CMR = 250 ÷ 550 = 45.45%

Original fixed costs:

500,000 – 300,000 – 150,000 = 50,000

New fixed cost = 50,000 x 0.80 = 40,000

Breakeven sales = 40,000/0.4545 = P88,000

42. Selling Price 60

Unit Variable Cost (22)

Contribution Margin 38

 That amount will decrease by $2 to $36 in the upcoming year because of use of a
higher-grade component.
 Fixed costs will increase from $504,000 to $522,000 as a result of the $18,000
($180,000 ÷ 10years) increase in fixed costs attributable to depreciation on the new
machine. Dividing the $172,800 of desired after-tax income by 60% (the
complement of the tax rate) produces a desired before-tax income of $288,000

BEP= Fixed Cost + Desire Profit /CM per unit

= [($522,000 + $288,000) ÷ $36]

= 22,500 units