Contribution margin ratio

1 Sales 300,000 300,000 40% 120,000/300000

Variable Cost unknown 180,000
CM unknown 120,000 90,000+30,000 break even point (sales)
Fixed cost 90,000 90,000 formula fixed cost/ CM ratio
net income unknown 30,000 300,000* 10%
Php 225,000.00 90,000 / 40%

6 Residual income as if there is NO order from foreign customer

Sales 700,000 756,000 320,000+436,000

variable cost 280,000 320,000 (70,000+10,000) * 4
CM 420,000 436,000 310,000+126,000
Fixed cost 300,000 310,000 300,000+10,000
Net income 120,000 126,000 81,000+45,000
Minimum ROI 75,000 500,000 * 15% 81000 (500,000+400,000) * 15%
residual income 45,000 45,000 ( copy)

SHOULD BE THE SAME

the question is at how much should the additional 10,000 units will be sold?
ans: 756,000 is composed of 70,000 units and 10,000 units, the value of 70,000 units is
700,000 ( 70,000 x 10 pesos), so the remaining 56, 000 (756,000 - 700,000)
will be 56,000 divide by 10,000 units foreign order, the answer is 5.6

700000 (10,000 units) so the sales price is 10 pesos (given na yan)

756,000
56000 ( divide to 10,000 units order by foreign customer)

number of yards na kelangan sa isang product ( 2 yards)

pero it doesn’t mean na yan lng ang kelangan mo gamitin. Bkt? Kasi may spoilage,
may masasayang kaya kelangan may sobra.. So dapat mas madame sa 2 yards.
sabe sa GIVEN, kada input mo, may masasayang na 20%, so ung 2 yards na output is 80% lng..
need natin ang 100%, so 2 yards divide by 80% para makuha ung 100%.. Ang sagot is 2.5 yards..
ang ibig sabihin nian, kelangan mo ng input na 2. 5 yards para pag may nasayang na 20% which is 0.5
(2.5 x 20%) ang end result is sakto sa required na 2 yards.. so ayun alam na natn na gagamit tau ng
2.5 yards kelangan ntn malaman ung halaga or cost nya, sabi sa given, kada yards is 120 pesos.
multiply mo lng ( 2.5 x 120 pesos) ang sagot is 300 pesos per unit.. ( ibig sabihin yan ang halaga ng
materyales na kelangan sa T-shirt (2.5 yards X 120 pesos per yard) pero uulitin ko it doesn’t mean na
2.5 yards ung ginamit mo is un din ung actual na nasa T-shirt, meron nga kasi masasayang kaya in the
end 2 yards lng sa tlga magagamit mo which is sakto dun sa required..