Any-How Restaurant sells grilled chicken at P350.00 each and incurs a variable cost per unit of P300.00 each. The total fixed cost is P500,000.00. 1)How much is the total variable operating cost at 150,000 sales volume? 2)What is the volume of production for the firm not to incur any profit nor loss? 3)How much EBIT will the firm generate at 100,000 sales volume? 4)At zero quantity of production, how much is the total cost? 5)What is the volume of production if the company wants to earn P500,000 profit?

Any-How Restaurant sells grilled chicken at P350.00 each and incurs a variable cost per unit of P300.00 each. The total fixed cost is P500,000.00. 1)How much is the total variable operating cost at 150,000 sales volume? 2)What is the volume of production for the firm not to incur any profit nor loss? 3)How much EBIT will the firm generate at 100,000 sales volume? 4)At zero quantity of production, how much is the total cost? 5)What is the volume of production if the company wants to earn P500,000 profit?

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter3: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 7EB: Delta Co. sells a product for $150 per unit. The variable cost per unit is $90 and fixed costs are...

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