ABC Company breaks even at P300,000sales and earns P30,000 at P350,000 sales. Which of the following is true? Fixed costs are P20,000. Profit at sales of P400,000 would be P80,000. The selling price per unit is P3. Contribution margin is 60% of sales.

ABC Company breaks even at P300,000sales and earns P30,000 at P350,000 sales. Which of the following is true? Fixed costs are P20,000. Profit at sales of P400,000 would be P80,000. The selling price per unit is P3. Contribution margin is 60% of sales.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

ABC Company breaks even at P300,000sales and earns P30,000 at P350,000 sales. Which of the following is true?

Fixed costs are P20,000.

Profit at sales of P400,000 would be P80,000.

The selling price per unit is P3.

Contribution margin is 60% of sales.

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