1. ARC Company has fixed costs of P125,000. At the breakeven point, 100,000 units are sold. If variable costs are P2.68 per unit, what is the price?
1. ARC Company has fixed costs of P125,000. At the breakeven point, 100,000 units are sold. If variable costs are P2.68 per unit, what is the price?
Chapter14: Capital Structure Management In Practice
Section14.A: Breakeven Analysis
Problem 7P
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Question
![PE 5. Compute the answers to each of the following
independent situations:
1. ARC Company has fixed costs of P125,000. At the
breakeven point, 100,000 units are sold. If variable costs
are P2.68 per unit, what is the price?
2. Johnson Company has a breakeven point of 4,800 units. At
breakeven, variable costs are P480,000 and fixed costs are
720,000. What is the total revenue?
3. Boo Company's current sales volume is 7,200 units with
selling price of P15 per unit. The company has total fixed
costs of P720,000 within a range of 2,500 to 7,500. At
breakeven point, how much total contribution margin does
Boo Company earn?](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F3acdaf70-8a9d-41fb-862e-2c322d1b2bc3%2Ff29e287f-d9b7-47a3-b981-e2d863e6a57d%2Fv3sj1n_processed.jpeg&w=3840&q=75)
Transcribed Image Text:PE 5. Compute the answers to each of the following
independent situations:
1. ARC Company has fixed costs of P125,000. At the
breakeven point, 100,000 units are sold. If variable costs
are P2.68 per unit, what is the price?
2. Johnson Company has a breakeven point of 4,800 units. At
breakeven, variable costs are P480,000 and fixed costs are
720,000. What is the total revenue?
3. Boo Company's current sales volume is 7,200 units with
selling price of P15 per unit. The company has total fixed
costs of P720,000 within a range of 2,500 to 7,500. At
breakeven point, how much total contribution margin does
Boo Company earn?
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