a. Determine the firm’s fixed costs that are expected next year. b. Calculate the firm’s break-even point in both units and pulas.
a. Determine the firm’s fixed costs that are expected next year. b. Calculate the firm’s break-even point in both units and pulas.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Bonaventure Manufacturing expects to earn P210,000 next year after taxes. Sales will be
P4million. The firm manufactures a combined bookshelf and desk unit used extensively in
university dormitories. These units sell for P200 each and a have variable cost per unit of P150.
Bonaventure experiences a 30% tax rate.
a. Determine the firm’s fixed costs that are expected next year.
b. Calculate the firm’s break-even point in both units and pulas.
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