Answered: Albatross Company has fixed costs of…

Albatross Company has fixed costs of P90,300. At a sales volume of P360,000, return on sales is 10%; at a P600,000 volume, return on sales is 20%. What is the break-even volume?

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter16: Capital Structure Decisions

Section: Chapter Questions

Problem 1P

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Question

Albatross Company has fixed costs of P90,300. At a sales volume of P360,000, return on sales is

10%; at a P600,000 volume, return on sales is 20%. What is the break-even volume?

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