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Andrea Gail Gatpandan AC101: Total Cost FC+VC (X)

This document contains calculations to determine total cost, total sales, profit, and break-even sales volume for two companies - an electronics company that produces calculators and a furniture company that produces chairs. For the electronics company producing 50,000 calculators annually, the total cost is P5.45 million, total sales is P12.5 million, profit is P7.05 million, and break-even sales is 3,000 units. For the furniture company producing 2,500 chairs monthly, the total cost is P487,500, total sales is P500,000, profit is P12,500, and break-even sales is 2,400 units.

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Paola Cayabyab
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285 views

Andrea Gail Gatpandan AC101: Total Cost FC+VC (X)

This document contains calculations to determine total cost, total sales, profit, and break-even sales volume for two companies - an electronics company that produces calculators and a furniture company that produces chairs. For the electronics company producing 50,000 calculators annually, the total cost is P5.45 million, total sales is P12.5 million, profit is P7.05 million, and break-even sales is 3,000 units. For the furniture company producing 2,500 chairs monthly, the total cost is P487,500, total sales is P500,000, profit is P12,500, and break-even sales is 2,400 units.

Uploaded by

Paola Cayabyab
Copyright
© © All Rights Reserved
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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Andrea Gail Gatpandan

AC101

1. An Electronic Company produces calculators. The annual fixed cost of producing calculation is
P450,000. The variable cost of producing a calculator is P100. The company sell the calculators for P250.
Given an annual volume of 50,000 calculators, determine the total cost, total sales, profit and break-
even sales volume

Given:

Fixed Cost = P450,000

Variable Cost = P100

Selling Price= P250

Calculator’s Annual volume = 50,000

A. TOTAL COST COMPUTATION:

Total Cost= FC+VC(X)

X= 450,000 + (100 (50,000))

X= 450,000 + 5,000,000

Total cost = P5,450,000

B. TOTAL SALES COMPUTATION:

Total Sales or Revenue = (SP) (X)

TR = (250) * (50,000)

Total Revenue = P12,500,000

C. PROFIT COMPUTATION:

Profit= (TR) – (TC)

P= 12,500,000 – 5,450,000

Profit = P7,050,000
D. BREAK EVEN SALES COMPUTATION:

Break even= FC/SP-VC

Break even = 450,000/ (250-100)

Break even= 450,000/150

Break even = 3,000

2. The Adu Furniture Company produces chairs. The fixed monthly cost of production is P300,000 and
the variable cost per chair is P75. The chair sells for 200 a piece. For a monthly volume of 2500 chairs,
determine the total cost, total sales and profit. What is the break even sales volume of the company?

Given:

Fixed Cost= P300,000

Variable Cost= P75

Selling Price= P200

Chair’s Monthly Volume = 2500

A. TOTAL COST COMPUTATION:

Total Cost= FC+VC(X)

X= 300,000 + (75 (2500))

X= 300,000 + 187,500

Total cost = P487,500

B. TOTAL SALES COMPUTATION:

Total Sales or Revenue = (SP) (X)

TR= (200) * (2500)

Total Revenue = P500,000


C. PROFIT COMPUTATION:

Profit= (TR) – (TC)

P= (500,000) – (487,500)

Profit = P12,500

D. BREAK EVEN SALES COMPUTATION:

Break even= FC/SP-VC

Break even= 300,000/(200-75)

Break even= 300,000/125

Break even = 2,400

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