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.

Q: A company has $50 per unit in variable costs and $1,200,000 per year in fixed costs. Demand is…

A: Price = Total cost + Mark up on cost

Q: A machine manufacturer sells each machine for $6,900. The fixed costs are $287,450 per annum,…

A: The break-even volume is the level of sales of a company in terms of the number of units sold, which…

Q: A company requires $1305600 in sales to meet its operating income target. Its contribution margin is…

A: Sales revenue: It is the revenue earned by a business on selling the goods or providing services to…

Q: Jordan Inc. manufactures Product B, incurring variable product costs of $15.00 per unit and fixed…

A: Mark-Up % :— Mark Up cost is the Difference Between Sales - Total Product Cost. Markup % as per…

Q: Product X sells for $35 per unit and has related variable costs of $25 per unit. The fixed costs of…

A: Number of units of product that must be sold  to earn desired income = (Fixed cost + Desired…

Q: A company sells one of the items in its product line for $9.70 each. The variable costs per unit is…

A: The net income is calculated as total revenue less variable cost and less fixed costs. The total…

Q: A company sells one of its products for $13.60 per unit. Its fixed costs are $1,056.00 per month,…

A: A company can determine the minimum sales volume necessary to avoid losses by using break-even…

Q: Klamath Company produces a single product. The projected income statement for the coming year is as…

A: Income statement: The income statement shows the company's revenues and expenses earned during the…

Q: Calculate the number of units the company needs to sell in order to break even. The company sells…

A:

Q: The Titan Company provides you with the following information for the current year: Revenues =…

A: It is given that cost of goods sold = $750,000 2/3rd of the above is variable , variable cost =…

Q: A firm has the capacity to produce 599,374 units of a product each year. At present, it is operating…

A: Break-even point:- Break-even point is defined as the point on which the cost of production is equal…

Q: The following annual information is for Dexter Corporation:   Product A Revenue per unit: $20.00…

A: Formula: Unit contribution margin = Selling price - Variable cost per unit

Q: Last year, Bread City had sales of 70,000 loaves resulting in revenues of $350,000. Variable costs…

A: Solution:- Profit means the surplus of revenue over the incurred costs.

Q: A company has monthly fixed costs of $135,000. The variable costs are $5 per unit. If the sales…

A: Fixed cost is the cost that doesn't change with the change in the level of production. It's a period…

Q: A company sells one of its products for $13.80 per unit. Its fixed costs are $1,080.00 per month,…

A: The break even sales are calculated as fixed cost divided by contribution margin ratio. The net…

Q: C Corporation sells its product for $12 per unit. Next year, fixed expenses are expected to be…

A: Analysis of the target profit helps a company to determine the level of dollar sales required to…

Cost volume profit (CVP) analysis

CVP analysis is a cost-volume-profit technique of cost accounting that examines the influence of varying levels of expenses and volume on operating profit. Cost Volume Profit analysis determines the relationship between Cost, Sale Volume, sales price, and Profit. CVP analysis is also known as break-even analysis which helps the business organization, banks, and their management to determine and forecast how a change in total sales and cost affects the profit of the organization. CVP analysis helps in financial decision-making for the budget, expense, tax, market investment, and corporate finance and aims at measuring variations in cost and volume.