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CoursHeroTranscribedText: Camille Company operates a chain of retail paint stores. Although the paint is sold...

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Accounting

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CoursHeroTranscribedText: Camille Company operates a chain of retail paint stores. Although the paint is sold under the Camille label, it is purchased from an independent manufacturer. The president is studying the possibility of opening another store. His estimates of monthly costs for the proposed location are: Fixed costs: Occupancy costs P31,600 Salaries 36,400 12,000 Others Variable costs (including cost of paint) P70 per gallonAlthough Camille stores sell different types of paint, monthly sales revenue consistently averages P100 per gallon sold. REQUIRED: 1. Compute the contribution margin ratio and the break-even point in peso sales and in gallons sold for the proposed store. 2. Draw a monthly break-even chart for the proposed store, assuming 3,000 gallons per month as the maximum sales potential. 3. The president thinks that the proposed store will sell between 2,200 and 2,600 gallons of paint per month. Compute the amount of operating income that would be earned per month at each of these sales volumes

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