Revenue and cost details for a company’s single product are as follows: BWP per unit BWP per unit Sales price Variable cost Fixed cost Profit 15 8 27 (23) 4 Fixed costs are absorbed based on the company’s normal activity, which is also the company’s budgeted sales value for each period. Last period there were no changes in inventory and the company achieved a margin of safety of 20% of the actual sales volume. Fixed costs were over-absorbed by P2,400. Required: a. Calculate the breakeven point in units for each period.
Revenue and cost details for a company’s single product are as follows: BWP per unit BWP per unit Sales price Variable cost Fixed cost Profit 15 8 27 (23) 4 Fixed costs are absorbed based on the company’s normal activity, which is also the company’s budgeted sales value for each period. Last period there were no changes in inventory and the company achieved a margin of safety of 20% of the actual sales volume. Fixed costs were over-absorbed by P2,400. Required: a. Calculate the breakeven point in units for each period.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Revenue and cost details for a company’s single product are as follows:
BWP per unit BWP per unit
Sales price
Variable cost
Fixed cost
Profit
15
8
27
(23)
4
Fixed costs are absorbed based on the company’s normal activity, which is also the
company’s budgeted sales value for each period. Last period there were no changes in
inventory and the company achieved a margin of safety of 20% of the actual sales volume.
Fixed costs were over-absorbed by P2,400.
Required:
a. Calculate the breakeven point in units for each period.
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The b part which says calculate the number of units to be produced and sold to achieve a profit of 6 600 for the period
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