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Sole Company manufactures running shoes. The selling price per pair of shoes (one unit) averages Php80 and variable costs per pair are Php47.50. The sales
Sole Company manufactures running shoes. The selling price per pair of shoes (one unit) averages Php80 and variable costs per pair are Php47.50. The sales volume of Php776,000 produces Php100,750 of net income before taxes.
Required:
a.Compute total fixed costs.
b.Compute total variable costs.
c.Compute the breakeven point in units.
d.Compute the quantity of units above breakeven to reach targeted net income before taxes.
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