The total number of units that National Co. needs to produce and sell in order to break-even is 150,000 units100,000 units153,947 units300,000 units National Co. has the following revenue and cost budgets for the two products it sells:Plastic CupsP10.00Glass cupsP15.00Sales priceDirect materialsDirect labor(2.00)(3.00)(3.00)P2.00100,000(3.00)(5.00)(2.75)P4.25300,000Fixed overheadNet income per unitBudgeted unit salesThe budgeted units sales equal the current unit demand, and total fixed overhead for the year isbudgeted at P975,000. Assume that the company plansto maintain the same proportion al mix.

Contribution margin is calculated as sales less variable cost OR fixed costs add profit margin. In…

Answered: The total number of units that National…

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The total number of units that National Co. needs to produce and sell in order to break-even is

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

The total number of units that National Co. needs to produce and sell in order to break-even is

150,000 units

100,000 units

153,947 units

300,000 units

National Co. has the following revenue and cost budgets for the two products it sells:
Plastic Cups
P10.00
Glass cups
P15.00
Sales price
Direct materials
Direct labor
(2.00)
(3.00)
(3.00)
P2.00
100,000
(3.00)
(5.00)
(2.75)
P4.25
300,000
Fixed overhead
Net income per unit
Budgeted unit sales
The budgeted units sales equal the current unit demand, and total fixed overhead for the year is
budgeted at P975,000. Assume that the company plansto maintain the same proportion al mix.

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