5. Revenue and cost details for a company’s single product are
as follows:
BWP per
unit
BWP per unit
Sales price
27
Variable cost
15
Fixed cost
8
Profit
(23)
4
Fixed costs are absorbed based on the company’s normal activity,
which is also the
company’s budgeted sales value for each period. Last period there
were no changes in
inventory and the company achieved a margin of safety of 20% of the
actual sales volume.
Fixed costs were over-absorbed by P2,400.
Required:
a. Calculate the breakeven point in units for each period.
b. Calculate the number of units to be produced and sold to
achieve a profit of P6,600 for
the period.
5. Revenue and cost details for a company’s single product are as follows:
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