2. An automobile company sells certain automotive parts. Present sales volume is 450,000 units a year at selling price of P0.55 per unit. Fixed expenses is P85,000 per year. What is the break-even point in pesos?
2. An automobile company sells certain automotive parts. Present sales volume is 450,000 units a year at selling price of P0.55 per unit. Fixed expenses is P85,000 per year. What is the break-even point in pesos?
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Transcribed Image Text:of 600,000 units per year is only operating 60% capacity due to unavailability of
materials. The annual income is P400,000, annual fixed costs are P180,000 and
variable costs are P0.35 per unit. What is the break-even point?
2. An automobile company sells certain automotive parts. Present sales volume is
450,000 units a year at selling price of P0.55 per unit. Fixed expenses is P85,000 per
year. What is the break-even point in pesos?
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