I'm Still Alive But I'm Barely Breathing

BREAK-EVEN ANALYSIS:
1. TOTAL COST
Where: SP= Selling price
VC= Variable cost
FC= Fixed cost
A. Jack O Sweet Corporation sells Chocolate Candies.
Fixed Cost:
Rent- P 40,000 per month
Labor- P 30,000 per month
Variable Cost:
Chocolate Candies- P15/ pack
Selling Price:
Chocolate Candies-P 50 / pack
Given: Total Fixed Cost= P70, 000
Variable Cost per Unit= P15
Selling Price per Unit= P50
Computation:
Unit Contribution = SP VC
Unit Contribution = 50-15
Unit Contribution = P35
Break-even Point= FC / Unit Contribution
Break-even Point= 70, 000 / 35
Break-even Point= 2000 units
B. Faye SucGUN Company produces military equipment.
Given: Total Fixed Cost= P 2, 500, 000

Variable Cost per Unit= P 30, 000
Selling Price per Unit= P 80, 000
Computation:
Unit Contribution = 80 000-30 000
Unit Contribution = P50, 000
Break-even Point= 2 500 000/ 50 000
C. HoneyBelle Company manufactures honey.
Fixed Cost:
Rent- P 20, 000 per month
Labor- P 12,000 per month
Variable Cost:
Honey- P50/ bottle
Selling Price:
Honey -P 120 / bottle
Computation:

D. Cielos Garden opens a Flower Shop.
Computation:
E. Balengua Company opens a Pasalubong Shop.
Computation:

2. PROFIT/LOSS
A. Jack O Sweet sells Chocolate Candies. How much profit/loss is made when
3, 000 packs of chocolate candies are sold?
Each pack of Chocolate Candies is sold for P 50

Variable Cost per pack of Chocolate Candies P15
Fixed Cost total P70, 000
Given: SP= P50
VC= P15
FC= P70, 000
Sales = 3, 000 units
Computation:
Total Contribution = Unit Contribution x no of units
Total Contribution = P35 x 3, 000
Total Contribution = P 105, 000
Net Profit = Total Contribution Fixed Costs
Net Profit = P 105, 000 - P 70, 000
Net Profit = P 35, 000
B. Faye SucGUN Company produces military equipment. How much profit/loss

is made when 100 guns are sold?
Each gun is sold for P 80, 000
Variable Cost per gun is P30, 000
Fixed Cost total P2, 500, 000

Given: SP= P80, 000
VC= P30, 000
FC= P2, 500, 000
Sales = 100 units
Computation:
Unit Contribution = 80, 000 30, 000
Unit Contribution = P50, 000
Total Contribution = P50, 000 x 100
Total Contribution = P 5, 000, 000
Net Profit = P5, 000,000 - P 2,500, 000
Net Profit = P 2,500, 000
C. HoneyBelle Company manufactures honey. Each bottle of Honey is sold for P

120.Variable Cost per bottle of Honey is P50 and Fixed Cost total P32, 000.
How much profit or loss is made when 350 units are sold?
Given: SP= P120
VC= P50
FC= P32, 000
Sales = 350units
Computation:
Unit Contribution = 120 50

Total Contribution = P80 x 350 bottles
Net Profit = P 28, 000 - P 32, 000
Net Profit = (P 4, 000)
D. Cielos Garden opens a Flower Shop. Each bouquet of flowers is sold for
P500 .Variable Cost per bouquet of Honey is P250 and Fixed Cost total P100,
000. How much profit or loss is made when 500 bouquet of flowers are sold?
Given: SP= P500
VC= P250
FC= P100, 000
Sales = 500 bouquets
Computation:
Total Contribution = P250 x 500 bouquets

Net Profit = P 100, 000- P 125, 000
Net Profit = P 25, 000
E. Balengua Company opens a Pasalubong Shop. Each box of Araro cookies is

sold for P 250.Variable Cost per box of Araro cookies is P150 and Fixed Cost
total P20, 000. How much profit or loss is made when 100 box are sold?
Given: SP= P250
VC= P150
FC= P100, 000
Sales = 100 box
Computation:
Total Contribution = P100 x 100 box
Net Profit = P 10, 000 - P 20, 000
Net Profit = (P 10, 000)
3. PROFIT/VOLUME RATIO
A. Jack O Sweet Corporation sells Chocolate Candies.
Given: VC= P15
FC= P70, 000
Sales = P150, 000

Compute the P/V ratio
Computation:
Total Contribution = P35 x 3, 000
P/V Ratio = Total Contribution / Sales
P/V Ratio = (105 000 / 150 000) x 100
P/V Ratio= 70 %
Sales at BEP = Fixed Costs / P/V Ratio
Sales at BEP = 70 000 / 70%
Sales at BEP = P 100, 000
B. Faye SucGUN Company produces military equipment.
Given: VC= P30, 000
FC= P2, 500, 000
Sales =P 8, 000, 000
Compute the P/V Ratio
Computation:
Total Contribution = P50, 000 x 100
Total Contribution = P 5, 000, 000

P/V Ratio = (5, 000, 000 / 8, 000, 000) x 100
P/V Ratio= 62.5 %
Sales at BEP = 2, 500, 000 / 62.5%
Sales at BEP = P4, 000, 000
C. HoneyBelle Company manufactures honey.
Given: VC= P50
FC= P32, 000
Sales = P 42, 000
Computation:
Total Contribution = P80 x 350 bottles
P/V Ratio = (28 000 / 42 000) x 100
P/V Ratio= 66.67%
Sales at BEP = 32 000 / 66.67%

D. Cielos Garden opens a Flower Shop.
Given: VC= P250
FC= P100, 000
Sales = P 250, 000 bouquets
Computation:
Total Contribution = P250 x 500 bouquets
P/V Ratio = (125 000 / 250 000) x 100
P/V Ratio= 50 %
Sales at BEP = 100 000 / 50%
E. Balengua Company opens a Pasalubong Shop.
Given: VC= P150
FC= P100, 000
Sales = P 25, 000 box

Computation:
Total Contribution = P100 x 100 box
P/V Ratio = (10 000 / 25 000) x 100
P/V Ratio= 40 %
Sales at BEP = 100 000 / 40%

I'm Still Alive But I'm Barely Breathing

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BREAK-EVEN ANALYSIS:

Where: SP= Selling price

VC= Variable cost

FC= Fixed cost

A. Jack O Sweet Corporation sells Chocolate Candies.

Given: Total Fixed Cost= P70, 000

Variable Cost per Unit= P15

Selling Price per Unit= P50

Unit Contribution = 50-15

Unit Contribution = P35

Break-even Point= FC / Unit Contribution

Break-even Point= 70, 000 / 35

Break-even Point= 2000 units

B. Faye SucGUN Company produces military equipment.

Given: Total Fixed Cost= P 2, 500, 000

Selling Price per Unit= P 80, 000

Unit Contribution = 80 000-30 000

Unit Contribution = P50, 000

Break-even Point= FC / Unit Contribution

Break-even Point= 2 500 000/ 50 000

Break-even Point= 50 units

C. HoneyBelle Company manufactures honey.

Given: Total Fixed Cost= P32, 000

Variable Cost per Unit= P40

Selling Price per Unit= P120

Unit Contribution = 120-40

Unit Contribution = P80

Break-even Point= FC / Unit Contribution

Break-even Point= 400 units

D. Cielos Garden opens a Flower Shop.

Given: Total Fixed Cost= P100, 000

Variable Cost per Unit= P250

Selling Price per Unit= P500

Unit Contribution = 500-250

Unit Contribution = P250

Break-even Point= FC / Unit Contribution

Break-even Point= 100, 000 / 35

Break-even Point= 400 units

E. Balengua Company opens a Pasalubong Shop.

Given: Total Fixed Cost= P20, 000

Variable Cost per Unit= P150

Selling Price per Unit= P250

Unit Contribution = 250-150

Unit Contribution = P100

Break-even Point= FC / Unit Contribution

Break-even Point= 20, 000 / 100

Each pack of Chocolate Candies is sold for P 50

Given: SP= P50

FC= P70, 000

Sales = 3, 000 units

Unit Contribution = 50-15

Unit Contribution = P35

Total Contribution = Unit Contribution x no of units

Total Contribution = P35 x 3, 000

Total Contribution = P 105, 000

Net Profit = Total Contribution Fixed Costs

Net Profit = P 105, 000 - P 70, 000

Net Profit = P 35, 000

B. Faye SucGUN Company produces military equipment. How much profit/loss

Each gun is sold for P 80, 000

Variable Cost per gun is P30, 000

Fixed Cost total P2, 500, 000

VC= P30, 000