The Canon Corp. plans to market a new product. Based on its market studies, Canon Corp. estimates that it can sell 70,000 units in 2021. The selling price per unit is P2.00. Variable cost ratio is 40% of sales. Fixed Costs are estimated to be P150,000. What is the breakeven point in pesos?
The Canon Corp. plans to market a new product. Based on its market studies, Canon Corp. estimates that it can sell 70,000 units in 2021. The selling price per unit is P2.00. Variable cost ratio is 40% of sales. Fixed Costs are estimated to be P150,000. What is the breakeven point in pesos?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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10. The Canon Corp. plans to market a new product. Based on its market studies, Canon Corp. estimates that it can sell 70,000 units in 2021. The selling price per unit is P2.00. Variable cost ratio is 40% of sales. Fixed Costs are estimated to be P150,000. What is the breakeven point in pesos?
11. The Gomex Corp. sells product A for P90 each. Variable costs are P40 per unit. Fixed Costs are P585,000. Its current sales is P963,000. How much sales (in units) must be reached to realize a net income of P120,000 after income taxes, if tax rate is 25%?
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