EXERCISE-4BREAK-EVEN ANALYSIS8. A plant has capacity of producing 8,000 units per month of a product, which itsells for P1.50 per unit regardless of output. The monthly fixed costs areP2800 and a variable cost of P4800 at 75% capacity. What is the fixed costper unit at the break-even point?

Break-even is the point of sale at which the net profit is zero. The fixed cost per unit at the…

8. A plant has capacity of producing 8,000 units per month of a product, which it sells for Pl.50 per unit regardless of output. The monthly fixed costs are P2800 and a variable cost of P4800 at 75% capacity. What is the fixed cost per unit at the break-even point?

8. A plant has capacity of producing 8,000 units per month of a product, which it sells for Pl.50 per unit regardless of output. The monthly fixed costs are P2800 and a variable cost of P4800 at 75% capacity. What is the fixed cost per unit at the break-even point?

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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Question

EXERCISE-4
BREAK-EVEN ANALYSIS
8. A plant has capacity of producing 8,000 units per month of a product, which it
sells for P1.50 per unit regardless of output. The monthly fixed costs are
P2800 and a variable cost of P4800 at 75% capacity. What is the fixed cost
per unit at the break-even point?

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