Butter cup company distribute a single product. The company's sale's and expenses for last month follow:  Sale's  P 450,000.          Per unit P 30 Variable expenses 180,000 per unit  P12 Contribute margin  270,000 per unit P18 Fixed expenses 216,000 Net operating income  P54,000 What is the monthly break-even points in unit sold and in sales pesos?  How many units would have to be sold each month to earn a target profit of Php 90,000 $ Use the formula method verify your answer by preparing a contribution format income statement at the target sale's level

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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Butter cup company distribute a single product. The company's sale's and expenses for last month follow: 

Sale's  P 450,000.          Per unit P 30

Variable expenses 180,000 per unit  P12

Contribute margin  270,000 per unit P18

Fixed expenses 216,000

Net operating income  P54,000

What is the monthly break-even points in unit sold and in sales pesos? 

How many units would have to be sold each month to earn a target profit of Php 90,000 $ Use the formula method verify your answer by preparing a contribution format income statement at the target sale's level 

 

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