At a price of P12 the estimated monthly sales of a product is 10,000 units. Variable costs are P7 per unit. Fixed costs are P24,000 per month. How much is the margin of safety? a. P24,000 b. P67,600 c. P120,000
At a price of P12 the estimated monthly sales of a product is 10,000 units. Variable costs are P7 per unit. Fixed costs are P24,000 per month. How much is the margin of safety? a. P24,000 b. P67,600 c. P120,000
Chapter14: Capital Structure Management In Practice
Section14.A: Breakeven Analysis
Problem 7P
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At a price of P12 the estimated monthly sales of a product is 10,000 units. Variable costs are P7 per unit. Fixed costs are P24,000 per month. How much is the margin of safety?
a. P24,000
b. P67,600
c. P120,000
d. P52,400
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