Homework answers / question archive / 1)Muscat Contribution Income Statement is presented below [ 7 marks]: Total Sales (600 units) $36,000 Variable expenses $12,000 Contribution Margin $24,000 Fixed expenses $6,000 Net Income $18

1)Muscat Contribution Income Statement is presented below [ 7 marks]: Total Sales (600 units) $36,000 Variable expenses $12,000 Contribution Margin $24,000 Fixed expenses $6,000 Net Income $18

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1)Muscat Contribution Income Statement is presented below [ 7 marks]: Total Sales (600 units) $36,000 Variable expenses $12,000 Contribution Margin $24,000 Fixed expenses $6,000 Net Income $18.000 Required: a. Prepare Contribution Income Statement assuming that the business expects an increase in its total sales by $3,000 and decrease in variable cost per unit by 10%. (4 marks) b. Referring to the original contribution statement, calculate BEP in dollars. (1 mark) c. Referring to the original contribution statement, how many units would have to be sold by the business to earn a target profit of $26,000. Use the equation/ formula method and verify your answer by preparing Contribution Income Statement.

2) Peaceful Company realized a net income of P800,000 and paid dividends of P5.00 per share on its 21,000 ordinary shares issued and outstanding. In 2017, the company incurred a net loss of P95,000 and paid no dividends. How much is the balance of the Accumulated profits account as of December 31, 2017?