Question
Shafer Corporation manufactures and sell two products: A and B. The projected information on these two products for the coming year is presented below: Total
Total fixed costs for the company are projected at Php 500,000. Tax rate is 30%.
1. Compute the Break-even Point.
2. How may units would the company need to sell to produce an income after taxes equal to 10 percent of sales?
Sales in units Sales price per unit Variable costs per unit Product Product A B 4,000 1,000 Php 600 400 Php 400 200
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Breakeven Point in units Total Fixed Costs Sales Price per Unit Variable Cost per Unit Lets calculate the breakeven point for each product For Product ...Get Instant Access to Expert-Tailored Solutions
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