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5. Revenue and cost details for a company's single product are as follows: BWP per unit BWP per unit 27 Sales price Variable cost Fixed cost Profit 15 100 8 (23) 4 Fixed costs are absorbed based on the company's normal activity, which is also the company's budgeted sales value for each period. Last period there were no changes in inventory and the company achieved a margin of safety of 20% of the actual sales volume. Fixed costs were over-absorbed by P2,400. Required: a. Calculate the breakeven point in units for each period.

5. Revenue and cost details for a company's single product are as follows: BWP per unit BWP per unit 27 Sales price Variable cost Fixed cost Profit 15 100 8 (23) 4 Fixed costs are absorbed based on the company's normal activity, which is also the company's budgeted sales value for each period. Last period there were no changes in inventory and the company achieved a margin of safety of 20% of the actual sales volume. Fixed costs were over-absorbed by P2,400. Required: a. Calculate the breakeven point in units for each period.

FINANCIAL ACCOUNTING
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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5. Revenue and cost details for a company's single product are as follows: BWP per unit BWP per unit 27 Sales price Variable cost Fixed cost Profit 15 8 (23) 4 Fixed costs are absorbed based on the company's normal activity, which is also the company's budgeted sales value for each period. Last period there were no changes in inventory and the company achieved a margin of safety of 20% of the actual sales volume. Fixed costs were over-absorbed by P2,400. Required: a. Calculate the breakeven point in units for each period.
Transcribed Image Text:5. Revenue and cost details for a company's single product are as follows: BWP per unit BWP per unit 27 Sales price Variable cost Fixed cost Profit 15 8 (23) 4 Fixed costs are absorbed based on the company's normal activity, which is also the company's budgeted sales value for each period. Last period there were no changes in inventory and the company achieved a margin of safety of 20% of the actual sales volume. Fixed costs were over-absorbed by P2,400. Required: a. Calculate the breakeven point in units for each period.
b. Calculate the number of units to be produced and sold to achieve a profit of P6,600 for the period.
Transcribed Image Text:b. Calculate the number of units to be produced and sold to achieve a profit of P6,600 for the period.
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