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Swift, Inc., produces only two products, AAA and BBB. These account for 60% and 40% of the total sales of Swift, respectively. Variable costs (as
Swift, Inc., produces only two products, AAA and BBB. These account for 60% and 40% of the total sales of Swift,
respectively. Variable costs (as a percentage of sales peso) are 60% for AAA and 85% for BBB. Total fixed costs
are P150,000. There are no other costs.
1) What is Swift's breakeven point in peso?
2) Assume that the total fixed costs of Swift increase by 30%, what amount of total sales would be necessary togenerate a net income of P9,000?
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Income Tax Fundamentals 2013
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
31st Edition
1111972516, 978-1285586618, 1285586611, 978-1285613109, 978-1111972516
