NUBD Co.'s break even sales are P528,000. The variable costs ratio to sales is 60%, while the net income percentage is 8%. Compute the following: 1. Margin of safety ratio 2. Actual sales in pesos 3. Margin of safety in pesos. 4. Fixed costs 5. Net Income 6. Degree of operating leverage

NUBD Co.'s break even sales are P528,000. The variable costs ratio to sales is 60%, while the net income percentage is 8%. Compute the following: 1. Margin of safety ratio 2. Actual sales in pesos 3. Margin of safety in pesos. 4. Fixed costs 5. Net Income 6. Degree of operating leverage

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

NUBD Co.'s break even sales are P528,000. The variable costs ratio to sales is 60%, while the net income percentage is 8%.

Compute the following:

1. Margin of safety ratio

2. Actual sales in pesos

3. Margin of safety in pesos.

4. Fixed costs

5. Net Income

6. Degree of operating leverage

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