1. A small manufacturing operation can produce a certain product that sells for P64 p unit. The variable cost per unit is P36, and the fixed cost per week is P5,600. a. How many units must they sell per week to break even? b. Determine the firm's weekly profit or loss if it sells 340 units.

1. A small manufacturing operation can produce a certain product that sells for P64 p unit. The variable cost per unit is P36, and the fixed cost per week is P5,600. a. How many units must they sell per week to break even? b. Determine the firm's weekly profit or loss if it sells 340 units.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Concept explainers

Pricing

Pricing is used as a term in finance and economics, pricing is the process of fixing a value for a product or a service. Pricing establishes a value for a product or service that the customer has to pay. A business can choose from different strategies while deciding to set prices.

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1. A small manufacturing operation can produce a certain product that sells for P64 per
unit. The variable cost per unit is P36, and the fixed cost per week is P5,600.
a. How many units must they sell per week to break even?
b. Determine the firm's weekly profit or loss if it sells 340 units.

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