A plant has a capacity of producing 80T units per year of a product which it sells for P20.00 per unit regardless of output. The annual FC are P280T & a variable cost of P480T at 75% capacity. a) What is the break-even point in units? b) What is the fixed cost per unit and variable cost per unit at the break-even point? c) What is the profit at this level (75%) and at 100% capacity? d) At what volume of output will the company incur a loss?
A plant has a capacity of producing 80T units per year of a product which it sells for P20.00 per unit regardless of output. The annual FC are P280T & a variable cost of P480T at 75% capacity. a) What is the break-even point in units? b) What is the fixed cost per unit and variable cost per unit at the break-even point? c) What is the profit at this level (75%) and at 100% capacity? d) At what volume of output will the company incur a loss?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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) A plant has a capacity of producing 80T units per year of a product which it sells for P20.00 per unit
regardless of output. The annual FC are P280T & a variable cost of P480T at 75% capacity.
- a) What is the break-even point in units?
- b) What is the fixed cost per unit and variable cost per unit at the break-even point?
- c) What is the profit at this level (75%) and at 100% capacity?
- d) At what volume of output will the company incur a loss?
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