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The PILLOW Co. manufactures two products, AA and BB. The following are projections for the coming month: AA BB Sales P100,000 P150,000 Costs: Variable 60,000 40,000 Fixed cost for the period is P45,000. 1. Compute for the total breakeven sales. 2. Determine the sales requirement for each product to breakeven.

The PILLOW Co. manufactures two products, AA and BB. The following are projections for the coming month: AA BB Sales P100,000 P150,000 Costs: Variable 60,000 40,000 Fixed cost for the period is P45,000. 1. Compute for the total breakeven sales. 2. Determine the sales requirement for each product to breakeven.

FINANCIAL ACCOUNTING
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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The PILLOW Co. manufactures two products, AA and BB. The following are projections for the coming month:

AA BB
Sales P100,000 P150,000
Costs:
Variable 60,000 40,000

Fixed cost for the period is P45,000.

1. Compute for the total breakeven sales.
2. Determine the sales requirement for each product to breakeven.

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