Shalom Company projects the following operating results next year: Produced 70,000 units Sales 60,000 units Sales price
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Question:
Shalom Company projects the following operating results next year:
Produced 70,000 units
Sales 60,000 units
Sales price 10 per unit
Total fixed cost 300,000 per year
Total variable cost 20% of sales
Variable selling and administrative expense 0.60 per unit
Fixed selling and administrative expense 160,000 per year
Compute the following:
(1) Break-even point in sales.
(2) Units that the company must sell to earn profit of P388,000.
(3) Fixed manufacturing overhead per unit.
(4) Income/(loss) under Variable Costing.
(5) Income/(loss) under Absorption Costing.
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