Company A has a fixed expenses of 15000 per year and each unit of product has a Php 0.002 variable cost. Company B has a fixed expenses of 5000 per year and can produce the same unit of product at Php 0.05 variable cost. At what number unit of annual production will Company A if they have the same overall cost as Company B?

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Company A has a fixed expenses of 15000 per year and each unit of product has a Php 0.002
variable cost. Company B has a fixed expenses of 5000 per year and can produce the same unit
of product at Php 0.05 variable cost. At what number unit of annual production will Company A
if they have the same overall cost as Company B?
Transcribed Image Text:Company A has a fixed expenses of 15000 per year and each unit of product has a Php 0.002 variable cost. Company B has a fixed expenses of 5000 per year and can produce the same unit of product at Php 0.05 variable cost. At what number unit of annual production will Company A if they have the same overall cost as Company B?
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