A certain company has the capacity to produce 500,000 units of a product yearly. This year, the company produced 350,000 units and were sold for a total income of P350,000,000. Overhead cost is P100,000,000 and the variable cost is P200.00 per unit. Find the number of units that should be sold annually to break even.

A certain company has the capacity to produce 500,000 units of a product yearly. This year, the company produced 350,000 units and were sold for a total income of P350,000,000. Overhead cost is P100,000,000 and the variable cost is P200.00 per unit. Find the number of units that should be sold annually to break even.

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter3: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 6MC: If a company has fixed costs of $6.000 per month and their product that sells for $200 has a...

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