A certain company has the capacity to produce 500,000 units of a product yearly. This year, the company produced 350,000 units and were sold for a total income of P350,000,000. Overhead cost is P100,000,000 and the variable cost is P200.00 per unit. Find the number of units that should be sold annually to break even.

A certain company has the capacity to produce 500,000 units of a product yearly. This year, the company produced 350,000 units and were sold for a total income of P350,000,000. Overhead cost is P100,000,000 and the variable cost is P200.00 per unit. Find the number of units that should be sold annually to break even.

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter3: Cost Behavior

Section: Chapter Questions

Problem 26E: Starling Co. manufactures one product with a selling price of 18 and variable cost of 12. Starlings...

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