SHOW COMPLETE SOLUTION Problem 3: ABC Corporation manufactures a certain product that sells for P5,000 each. The company’s maximum production capacity is 360 units per year. At present it is able to produce and sell 280 units a year. The cost to manufacture each product is P2,400 and the fixed operating cost per year is P520,000. What is the break – even sales volume of the product per year? What is the profit per year based on the present production – sales status? What is the loss if only 150 units were produced and sold in a year?
SHOW COMPLETE SOLUTION Problem 3: ABC Corporation manufactures a certain product that sells for P5,000 each. The company’s maximum production capacity is 360 units per year. At present it is able to produce and sell 280 units a year. The cost to manufacture each product is P2,400 and the fixed operating cost per year is P520,000. What is the break – even sales volume of the product per year? What is the profit per year based on the present production – sales status? What is the loss if only 150 units were produced and sold in a year?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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SHOW COMPLETE SOLUTION
Problem 3: ABC Corporation manufactures a certain product that sells for P5,000 each.
The company’s maximum production capacity is 360 units per year. At present it is able to
produce and sell 280 units a year. The cost to manufacture each product is P2,400 and the
fixed operating cost per year is P520,000.
What is the break – even sales volume of the product per year?
What is the profit per year based on the present production – sales status?
What is the loss if only 150 units were produced and sold in a year?
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