Dennis Company sells a product for P20, variable costs are P8 per unit, and fixed costs are P32,000. a. What is Dennis' break-even point in units? b. Find the selling price that Dennis must charge to earn an P8,000 profit selling 1,600 units. c. Dennis is considering new equipment that would increase fixed costs by P2,000 while reducing unit variable costs by P1.60 per unit. Find the sales level where Dennis is indifferent between the two cost structures.

Dennis Company sells a product for P20, variable costs are P8 per unit, and fixed costs are P32,000. a. What is Dennis' break-even point in units? b. Find the selling price that Dennis must charge to earn an P8,000 profit selling 1,600 units. c. Dennis is considering new equipment that would increase fixed costs by P2,000 while reducing unit variable costs by P1.60 per unit. Find the sales level where Dennis is indifferent between the two cost structures.

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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