An organization's break-even point is 4,000 units at a sales price of P50 per unit, variable cost of P30 per unit, and total fixed costs of P80,000. If the company sells 500 additional units, by how much will its profit increase? A. P25,000 B. P15,000 C. P10,000 D. P12,000
An organization's break-even point is 4,000 units at a sales price of P50 per unit, variable cost of P30 per unit, and total fixed costs of P80,000. If the company sells 500 additional units, by how much will its profit increase? A. P25,000 B. P15,000 C. P10,000 D. P12,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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An organization's break-even point is 4,000 units at a sales price of P50 per unit,
variable cost of P30 per unit, and total fixed costs of P80,000. If the company
sells 500 additional units, by how much will its profit increase?
A. P25,000
B. P15,000
C. P10,000
D. P12,000
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