not to change with production rate. The total annual sales are P560,000, and the product sales atP4/kg. What is the breakeven point in kilograms of product per year?C. 80,000 kg/yrA. 100,000 kg/yrB. 140,000 kg/yr25. Refer to problem 24, what is the breakeven point in terms of percent production capacity?C. 50%A. 40%D. 55%D. 200,000 kg/yrB. 45%26. Refer to problem 24, what is the gross annual profit at 100% production capacity?A. P300,000B. P180,000C. P200,000D. P220,00027.Refer to problem 24, what is the net annual profit at 100% production capacity if the income tax rate is35% of gross profit?A. P195,000B. P130,000C. P140,000D. P150,000 24. The annual variable production costs for a plant operating at 70% capacity are P210,000. The sum ofthe annual fixed charges, overhead costs, and general expenses is P200,000 and may be considered

Given: Operating Capacity - 70% Variable cost - P210000 Fixed Cost - P200000 Annual Sales - P560000…

Answered: The annual variable production costs…

The annual variable production costs for a plant operating at 70% capacity are P210,000. The sum of the annual fixed charges, overhead costs, and general expenses is P200,000 and may be considered

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

not to change with production rate. The total annual sales are P560,000, and the product sales at
P4/kg. What is the breakeven point in kilograms of product per year?
C. 80,000 kg/yr
A. 100,000 kg/yr
B. 140,000 kg/yr
25. Refer to problem 24, what is the breakeven point in terms of percent production capacity?
C. 50%
A. 40%
D. 55%
D. 200,000 kg/yr
B. 45%
26. Refer to problem 24, what is the gross annual profit at 100% production capacity?
A. P300,000
B. P180,000
C. P200,000
D. P220,000
27.
Refer to problem 24, what is the net annual profit at 100% production capacity if the income tax rate is
35% of gross profit?
A. P195,000
B. P130,000
C. P140,000
D. P150,000

24. The annual variable production costs for a plant operating at 70% capacity are P210,000. The sum of
the annual fixed charges, overhead costs, and general expenses is P200,000 and may be considered

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