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A factory engaged in the fabrication of an automobile part with a production capacity of 700, units per year is operating only at 62% of capacity due to unavailability of the necessary foreign currency to finance the importation of their raw materials. The annual income is P430,000, annual fixed costs are P190,000, and variable cost are P0.348 per unit. What is the profit/loss ? What is the break even point?

A factory engaged in the fabrication of an automobile part with a production capacity of 700, units per year is operating only at 62% of capacity due to unavailability of the necessary foreign currency to finance the importation of their raw materials. The annual income is P430,000, annual fixed costs are P190,000, and variable cost are P0.348 per unit. What is the profit/loss ? What is the break even point?

Practical Management Science
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
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A factory engaged in the fabrication of an automobile part with a production capacity of 700, units per year is operating only at 62% of capacity due to unavailability of the necessary foreign currency to finance the importation of their raw materials. The annual income is P430,000, annual fixed costs are P190,000, and variable cost are P0.348 per unit.

  1. What is the profit/loss ?
  2. What is the break even point?
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