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25 Items 13 and 14 are based on the following information: ABC Company has the following revenue and cost budgets for the two products it
25 Items 13 and 14 are based on the following information: ABC Company has the following revenue and cost budgets for the two products it sells: Prod. X Prod. Y Sales price Php50 Php75 Direct materials 10 15 Direct labor 15 Fixed overhead 15 20 Net income per unit 10 15 Budgeted unit sales 100,000 300,000 The budgeted unit sales equal the current unit demand, and total fixed overhead for the year is budgeted at Php975,000. Assume that the company plans to maintain the same proportional mix. In numerical calculations, ABC rounds to the nearest cent and unit. 13. The total number of units ABC needs to produce and sell to break even is A. 30,000 units C. 35,455 units B. 60,000 units D. 70,909 units 14. The total number of units needed to breakeven if the budgeted direct labor costs were Php10 for Product X instead of Php15 is A. 28,889 units C. 29,235 units B. 30,806 units D. 31,200 units
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