. University Catering sells 50 pound bags of popcorn in the university dormitories for P10 a bag. Fixed cost of this operation are P80,000 while variable costs of the popcorn are P.10 per pound. a. What is the BEP in bags? b. Calculate the EBIT or loss on 12,000 bags and 25,000 bags. c. Calculate the EBIT or loss on 25,000 bags.

. University Catering sells 50 pound bags of popcorn in the university dormitories for P10 a bag. Fixed cost of this operation are P80,000 while variable costs of the popcorn are P.10 per pound. a. What is the BEP in bags? b. Calculate the EBIT or loss on 12,000 bags and 25,000 bags. c. Calculate the EBIT or loss on 25,000 bags.

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter14: Capital Structure Management In Practice

Section14.A: Breakeven Analysis

Problem 5P

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