Question

Paimon Manufacturing Company is planning to produce Almond Tofu, Jade Parcels, and Mondstadt Hash Brown. The Marketing Department estimated to sell 23,000 Almond Tofu, 16,000 Jade Parcels, and 11,000 Mondstadt Hash Brown for the entire year. The common fixed costs is P1,034,750. Additional data are as follows:

	Almond Tofu	Jade Parcels	Mondstadt Hash Brown
Selling Price	P120	P180	P225
Direct Materials per unit	32	63	76
Direct Labor per unit	12	19	23
Variable Factory Overhead	18	27	45.50
Direct Fixed Costs	P356,000	P273,000	P431,000
Variable Selling Expense per unit	4	8	13

Answer 1

Particulars Almond Tofu Jade Parcels Mondstadt Harsh Brown

Units 23000 16000 11000

Selling Price 120 180 225

- Direct Material (pu)    32 63 76

- Direct Labour (pu) 12 19   23

- Variable OH 18 27 45.5

Contibution (p.u.) 58 71 80.5

UNIT 23000 16000 11000

Total Contribution 133400 1136000 885500

-Direct Fixed Cost 356000 273000 431000   

-Variable Selling expense 92000 128000 143000

Profit/(Loss) (314600) 735000 311500

Total Profit of all products before common fixed cost = 735000+311500-314600

= 731900

Common Fixed Cost (1034750)

Total Loss of Paimon Manufacturing Company is 731900-1034750

=   (302850)