#16 ARRUEJO, LORENA CLAIRE R.

BSAC 3 AE 313 1256

1. Narciso Corporation
Material R19S-liters 880
multiply by: Original Cost per liter ₱ 6.20
Relevant Cost ₱ 5,456.00

2. Jordan Company
Sales per unit ₱ 23.00
less: Variable Cost per unit 19.00
Total ₱ 4.00
multiply by: units 40,000
Increase In Operating Income 160,000.00

3. Marley Company
X Y
Total Machine Hours 2000 0
Selling Price per unit ₱ 10.00 ₱ 15.00
less: Variable Cost per unit 6.00 10.00
Contribution Margin ₱ 4.00 ₱ 5.00
Required Time 2 4
Contribution Margin per hour 2.00 1.25
Maximum Production 1000 0

4. LB and NF
Process Further Cost ₱ 15.00
less: selling Price @ split off 13.00
Total ₱ 2.00
multiply: units 2000
Total Income ₱ 4,000.00
less: further Process Cost 14,000.00
Decrease in Profit -₱ 10,000.00

5. Tablot Company
Total Costs ₱ 160,000.00
divide by: wheels produced 100,000
Highest Price ₱ 1.60

6. Molis Company
Status Quo Alternative
Sales ₱ 150,000.00 ₱ 210,000.00
less: Variable Cost 87,500.00 140,000.00
Opportunity Cost - 6,000.00
Contribution Margin ₱ 62,500.00 ₱ 76,000.00
7. Carter Company
Further Processing ₱ 7.00
less: Selling Price @ split-off 3.80
Total ₱ 3.20
multiply by: units 30,000
Net Income ₱ 96,000.00
less: Further Processing Cost 60,000.00
Increase in Operating Income ₱ 36,000.00

PROBLEM SOLVING

Bambee Corporation
Fixed Costs ₱ 1,400,000.00
less: Total Shut Down Costs
Unavoidable Fixed Overhead ₱ 400,000.00
Unavoidable Fixed Expense 140,000.00
Security and Safety 400,000.00
Restart Up Costs 100,000.00 ₱ 1,040,000.00
Total ₱ 360,000.00
divide by: Contribution Margin per unit ₱ 80.00
Shut Down Point 4,500

Contribution Margin ₱ 800,000.00

Fixed Cash Expenses (1,400,000.00)
Loss from Continuing Operations (600,000.00)
Shut Down Costs 1,040,000.00
Net Advantage of Continuing Operations ₱ 440,000.00

Malley Sales Company

Baguio Dagupan
Sales ₱ 300,000.00 ₱ 500,000.00
less: Costs of Sales 120,000.00 200,000.00
Gross Profit ₱ 180,000.00 ₱ 300,000.00
less: Operating Expenses
Rent Expense 53,000.00 83,000.00
Advertising Expense 40,000.00 40,000.00
Salaries Expense 21,000.00 21,000.00
Other Costs 20,000.00 20,000.00
Net Profit or Loss ₱ 46,000.00 ₱ 136,000.00
 Z
0
₱ 20.00
10.00
₱ 10.00
10
1.00
0

Increase/Decrease
₱ 60,000.00
52,500.00
6,000.00
₱ 1,500.00
 TOTAL
₱ 800,000.00
320,000.00
₱ 480,000.00
₱ -
₱ 136,000.00
₱ 80,000.00
₱ 42,000.00
₱ 40,000.00
₱ 182,000.00