Activity 1

Kraile Holly Rosas produces and sells product RK and makes available to you the following data:
Unit sales price P80
Unit variable costs 50
Total fixed costs 600,000
Units sold 45,000
Requirements:
what would the new CMR, BEP (pesos) and operating profit, if:
Case 1: Unit sales price increases by 20%
Case 2: Unit variable costs increases by 10%
Case 3: Total fixed costs decreases to P450,000
Case 4: Unit sold increased by 20%
Case 5: Unit sales price increases to P100; unit variable costs increases by 15%; and total fixed costs
increase by 5%

Activity 2
Reeld Avendanio makes a product that sells for P240 per unit. Variable costs are P144 per unit and
fixed costs total P960,000 quarterly. The company sold 68, units during the current year.
Requirements:
1. unit contribution margin, contribution margin rate and variable cost rate.
2. breakeven point in units and in pesos
3. margin of safety in units and in pesos
4. margin of safety ratio.

Activity 3
Kraile Rosas and Co. manufactures and sells a single product. The company’s sales and expenses for
the recent month are shown below:
Total Per Unit
Sales P600,000 P40
Less: Variable expenses 420,000 28
Contribution margin 180,000 12
Less: Fixed expenses 150,000
Profit P30,000

Requirements:
1. Breakeven points in units and in pesos
2. What is the contribution margin at breakeven point?
3. How much is the total fixed costs and expenses at breakeven point?
4. Margin of safety in pesos, in units and in percentage
5. Compute the profit.
6. how much units must be sold to earn a minimum profit of P12,000?
7. if sales increase for P80,000, how much is the expected increase in profit?