Required:If ERD expects to incur P57,600 in fixed expenses next year, its break-even point must be? 15. ERD Company manufactures and sells two types of beach towels, standardand deluxe. ERD expects the following operating results next year for each typeof towel:StandardDeluxeSalesP450,000P50,000Variable expenses (total)P360,000P20,000

Solution: Standard Deluxe Total Sales 450000 50000 Less: Variable Expense 360000 20000…

Answered: Standard Deluxe Sales P450,000 P50,000…

Business

Accounting

Standard Deluxe Sales P450,000 P50,000 Variable expenses (total) P360,000 P20,000

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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Question

Required:

If ERD expects to incur P57,600 in fixed expenses next year, its break-even point must be?

15. ERD Company manufactures and sells two types of beach towels, standard
and deluxe. ERD expects the following operating results next year for each type
of towel:
Standard
Deluxe
Sales
P450,000
P50,000
Variable expenses (total)
P360,000
P20,000

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