The following price and cost data are given for Company E: Selling price per unit P25.00, Variable cost per unit P10.00 and Fixed Operating Costs P30,000.00. Calculate the break-even point and the the cash break-even point, assuming P5,000.00 of the firm's fixed cost is for depreciation. a. 500 units and 467 units b. 1000 units and 857 units c. 1500 units and 1287 units d. 2000 units and 1,667 units e. 2500 units and 2187 units
The following price and cost data are given for Company E: Selling price per unit P25.00, Variable cost per unit P10.00 and Fixed Operating Costs P30,000.00. Calculate the break-even point and the the cash break-even point, assuming P5,000.00 of the firm's fixed cost is for depreciation. a. 500 units and 467 units b. 1000 units and 857 units c. 1500 units and 1287 units d. 2000 units and 1,667 units e. 2500 units and 2187 units
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Choose the correct letter of answer:
The following price and cost data are given for Company E: Selling price per unit P25.00, Variable cost per unit P10.00 and Fixed Operating Costs P30,000.00. Calculate the break-even point and the the cash break-even point, assuming P5,000.00 of the firm's fixed cost is for
a. 500 units and 467 units
b. 1000 units and 857 units
c. 1500 units and 1287 units
d. 2000 units and 1,667 units
e. 2500 units and 2187 units
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps
Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education