Cost Volume Profit Practice Analysis Exercises PDF

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simple exercises for cost volume profit analysis topic...

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COST VOLUME PROFIT ANALYSIS Exercise 1 Selling price Variable Cost per unit

P 10 7

Total Fixed Cost Units sold

P 30,000 12,500

Calculate the following : 1. BEP in units _______________ 8. Net profit _________ 2. BEP in Sales ________________ 9. Sales to realize an income before tax of P 6,000 __________ 3. BEP % ________________ 10. Sales for an income P 7,200 after tax of 40 % ___________ 4. MS in units __________________ 11. New BEP when there is a 5. MS in Sales _______________ a. 10 % increase in selling price ________ 6. MS percentage _______________ b. 5 % increase in variable cost ________ 7. Net Profit percentage ________ c. 20 % increase in fixed cost _________

X COMPANY INCOME STATEMENT FOR THE YEAR ENDED DECE 31, 2020 Per unit

Sales Variable Cost Contribution Margin Fixed Cost Net Income

P 10 7 3

Actual Sales

100% 70 % 30 %

12,500 P 125,000 87,500 37,500 30,000 7,500

Break even Sales

10,000 100,000 70,000 30,000 30,000 0

Margin of Safety

2,500 P 25,000 17,500 7,500 7,500

Exercise 2 : Compute the missing terms : Contribution margin P 30,000 Margin of safety rate 20% Break even Sales P 80,000 1. Sales Revenue _______________ 3. Net income _______________ 2. Total Fixed Costs _______________ 4. Total variable costs _______________

Margin of safety 5. Total sales revenue 6. Break even Sales

P 30,000 Profit 8 % Variable Cost 60 % ______________ 7. Total fixed Cost ____________ ______________ 8. Margin of safety in Sales ____________

Margin of safety ratio 30% Profit rate 6% Break-even sales P 42,000 9. Total sales revenue ______________ 11. Total fixed Cost ____________ 10. Net income ______________ 12. Margin of safety in Sales ___________...