Answered: break-even point

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

A glass company produces paperweights for export. The paperweights were sold at P125 each which
does not include shipping cost of P20 per paperweights. These paperweights are then marked-up in
Japan of P560 per paperweights. The workers in the factory are paid, on the average, the equivalent
of P420 per day and it is estimated that the average daily output per worker is 70 paperweights. The
cost of the material is estimated at P44 per paperweigh ts. The fixed cost for the operation is P6M a
year. The company operates 288 days a year.

1. What is the break-even point?

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