Math Problem Statement
Ocampo Company is a manufacturer of its only one product line. It had sales of P500,000 with a contribution margin ratio of 20 percent. Its margin of safety ratio was 25 percent.What are the company’s fixed costs?
(1 Point)
P80,000
P125,000
P75,000
P100,000
Solution
To calculate **Ocampo Company's
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Math Problem Analysis
Mathematical Concepts
Cost-Volume-Profit Analysis
Contribution Margin
Fixed Costs Calculation
Formulas
Contribution Margin = Sales × Contribution Margin Ratio
Margin of Safety = Sales × Margin of Safety Ratio
Fixed Costs = Contribution Margin − Margin of Safety
Theorems
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Suitable Grade Level
Grades 10-12 or Business Studies
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