What is the shutdown point (in units) for one month? P 1,500 P 2,000 P 2,500 P 3,000
What is the shutdown point (in units) for one month? P 1,500 P 2,000 P 2,500 P 3,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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The following information is available for YOY Company: Fixed costs per annum (incurred uniformly) P 180,000 Selling price per unit P 15 Variable costs per unit 12 If the company will shutdown operations for one month, 40% of the fixed costs can be avoided but additional costs of P 1,500 will be incurred when the company resumes operations.
What is the shutdown point (in units) for one month?
- P 1,500
- P 2,000
- P 2,500
- P 3,000
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