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The Salesman Company currently sells its product for P15 and has variable costs of P7 per unit. Fixed costs are P50,000. Answer the following questions,

The Salesman Company currently sells its product for P15 and has variable costs of P7 per unit. Fixed costs are P50,000. Answer the following questions, consider each independently.

  • What is the breakeven point in units?
  • If fixed costs rise by 20%, what is the breakeven point in pesos?
  • If variable costs decline to P5, what is the breakeven point in units?
  • If the selling price per unit declines by 10%, what is the breakeven point in pesos?

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