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1. In 200A, the company’s sales was P500,000. Its fixed costs amounts to P100,000 per year. In 200B, sales was higher, while profit was P30,000 higher than the 200A figures.
For 200C, the company expects to have sales that is twice as much as the 200A sales. The expected increase in production to meet the sales demand in 200C will not require the company exceed its normal capacity.
Required:
a. What is the company’s contribution margin ratio?
b. How much profit does the company expect to earn in 200C?
c. What is the company’s break-even point in units?
. R. Beesley and A. Stanford each contributed $120,000 to purchase a shared equally.
a) If the business earned a profit of $32,000 after the original payment. What is the profit for each owner? (2 marks)
b) Calculate each owner's profit as a percent of the original contribution.
1. Case Corporation produces cellular phone cases. Each case requires a keypad which it also manufactures at a cost per P20 per unit, inclusive of fixed overhead costs of P5.
Case Corporation needs 50,000 units of this keypad annually. A supplier, Keypad Corp., has offered to sell to Case Corp. Its keypad requirements at P24 per unit. If Case decides to buy the keypads, P2 per unit of the fixed overhead based on the annual estimate could be eliminated, and the facility previously used to produce the keypad could be rented to another company.
a. If Case Corp. outsource the keypads but does not rent the unused facility, it would .
On 01 January 2020, a portion of a company's building was let to a tenant. However, rental of R26 200 was received and recorded for the entire year and included rent for January 2021. The company has a 31 December 2020 year-end. The January 2021 rent includes a 10% increase. Find journal entry that should be processed at year end
The cheapest form of funding for a business
On January 1,2021, Judycel Co. acquired on equipment for ₱500,000 on account with term of 3/10, n/30. Additional costs incurred are as follows:
Freight and insurance ₱15,000
Cost of testing and trial runs 12,000
Proceeds from selling the samples produced during
Testing and trial runs 2,000
Training cost of staff who will operate the equipment 13,000
The account was paid on January 10,2021.
How much is the cost of the equipment?
On January 1,2021, Jimar Co. acquired an equipment by issuing two-year, noninterest bearing note amounting to ₱1,000,000. The prevailing interest rate of the note is 12%.
Questions:
1. Assuming the equipment has cash price equivalent of ₱800,000, how much is the cost of the equivalent?
a. ₱800,000
2. Assuming the equivalent has no cash price equivalent, how much is the cost of the equivalent?
b. ₱797,200
January 1,2021, Raicel Co. traded an old equipment for a newer model. Data before the trade in are follows:
Old equipment:
Cost ₱350,000
Accumulated depreciation 120,000
Average published retail value 60,000
New equipment:
List price ₱400,000
Cash price without trade in 340,000
Cash price with trade in 270,000
Questions:
Based on the above data, answer the following:
1. How much is the cost of the equipment to be recognized by Raciel Co.?
2. How much is the gain (or loss) on trade in to be recognized by Raciel Co.?
On January 1,2021, Mhelson Co. acquired an equipment with a fair value of ₱5,080,000 by assuing 500 bonds. Each bond has a face value of ₱10,000 and fair value of ₱10,200.
Based on the above data, answer the following:
1. How much is the initial cost of the equipment?
2. How much is the gain (or loss) on exchange to be recognized in the profit or loss of Mhelson Co.?
On July 1, 2021, Ria Co. purchased a ₱400,000 tract of land that is interested to be the site of a new office complex. Ria incurred additional cost and realized salvage proceeds during 2021 as follows:
Demolition of the existing building on site 75,000
Legal and other fees to close escrow 12,000
Proceeds from sale of demolition scrap 10,000
Questions:
Based on the above data, answer the following:
1. Assume that the new office building is to be constructed right away, how much is the cost of the land?
2. Assume that the new office building is to be constructed next year, how much is the cost of the land?
