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Chapter 9 - Sample Problems
Chapter 9 - Sample Problems
a. P 50,000. c. P150,000.
b. P100,000. d. P200,000.
2. Walsh Company has three stores: X, Y, and Z. During August, the variable expenses in Store X were P90,000
and the contribution margin ratio was 25%. Store Y had a contribution margin of P27,000 and a contribution margin
ratio of 20%. Store Z had variable expenses of P120,000 and a variable expense ratio of 60% of sales. For August,
Walsh Company's sales were:
A. P318,000. c. P485,000.
B. P455,000. d. P555,000.
3. Mamee Company has two divisions, 1 and 2. During July, the contribution margin in Division 1 was P60,000. The
contribution margin ratio in Division 2 was 40% and its sales were P250,000. Division 2's segment
margin was P60,000. The common fixed expenses were P50,000 and the company net income was P20,000. The
segment margin for Division 1 was:
a. P0. c. P50,000.
b. P10,000. d. P60,000.
4. JTC Company has two sales areas: East and West. During last year, the contribution margin in the
East area was P50,000, or 20% of sales. The segment margin in the West area was P15,000, or 8% of sales. Traceable
fixed costs are P15,000 in the East and P10,000 in the West. During last year, the company
reported total net income of P26,000.The total fixed costs (traceable and common) for JTC Company for
the year were:
a. P49,000. c. P24,000.
b. P25,000 d. P50,000.
5. The variable costs for the West Area for the year were:
a. P230,000 c. P162,500.
b. P185,000. d. P 65,000.
6. Okinawa Company has two stores: D and S. During November, Okinawa Company reported a net income of P30,000
and sales of P450,000. The contribution margin in Store D was P100,000, or 40% of sales. The segment margin in
Store S was P30,000, or 15% of sales. Traceable fixed expenses are P60,000 in Store D, and P40,000 in Store S.
Sales in Store D totaled:
a. P400,000. c. P150,000.
b. P250,000. d. P100,000.
a. P 70,000. c. P200,000.
b. P110,000. d. P130,000.
a. P 40,000. c. P140,000.
b. P100,000. d. P170,000.
a. 16%. c. 40%.
b. 24%. d. 60%.
10. Mamee Company has two divisions, 1 and 2. During July, the contribution margin in Division 1 was P60,000. The
contribution margin ratio in Division 2 was 40% and its sales were P250,000. Division 2's segment margin was
P60,000. The common fixed expenses were P50,000 and the company net income was P20,000. The segment margin
for Division 1 was:
a. P0. c. P50,000.
b. P10,000. d. P60,000.