Total fixed expenses are P400,000 per month. All three products are sold in highly competitive markets, so the company is unable to raise its prices without losing unacceptable number of customers. The company has an extremely lean production system, so there is no beginning or ending work in process or finished goods inventories. What is the company's over-all break-even point in pesos?

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Dikit Corporation makes three different clothing
fasteners. Data concerning the three products are as
follows:
VELCRO METAL NYLON
Normal monthly sales 100,000| 200,000 400,000
volume
Unit selling price
Variable cost per unit
P1.65
P1.50
P0.85
1.25
0.70
0.25
Total fixed expenses are P400,000 per month. All
three products are sold in highly competitive
markets, so the company is unable to raise its prices
without losing unacceptable number of customers.
The company has an extremely lean production
system, so there is no beginning or ending work in
process or finished goods inventories. What is the
company's over-all break-even point in pesos?
Transcribed Image Text:Dikit Corporation makes three different clothing fasteners. Data concerning the three products are as follows: VELCRO METAL NYLON Normal monthly sales 100,000| 200,000 400,000 volume Unit selling price Variable cost per unit P1.65 P1.50 P0.85 1.25 0.70 0.25 Total fixed expenses are P400,000 per month. All three products are sold in highly competitive markets, so the company is unable to raise its prices without losing unacceptable number of customers. The company has an extremely lean production system, so there is no beginning or ending work in process or finished goods inventories. What is the company's over-all break-even point in pesos?
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