Question
1.The sales price per unit will increase from P32 to P40. The variable cost per unit will remain at P24, and the fixed costs will
1.The sales price per unit will increase from P32 to P40. The variable cost per unit will remain at P24, and the fixed costs will remain unchanged at P400,000. How many fewer units must be sold to break-even at the new sales price of P40 per unit?
2. The Dairy Corporation sells chocolate. The company breaks even at an annual sales volume of 80,000 units. At an annual sales volume of 100,000 units the company reports a profit of P220.000. The annual fixed costs for the Dairy Company are:
3. Babe Company has fixed costs of P90,300. At a sales volume of P360,000, return on sales is 10%; at a P600,000 volume, return on sales is 20%. What is the break-even volume?
Consider the following: Fixed expenses. P78,000 Unit contribution margin. 12 Target net profit. 42,000 How many unit sales are required to earn the target net profit?
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