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Adobe Company sold 100,000 units of its product at P20 per unit.  Variable costs were P14 per unit, consisting of manufacturing costs of P11 and selling costs of P3.  Fixed costs, which were incurred uniformly throughout the year, amounted to P792,000 (manufacturing costs of P500,000 and selling expenses of P292,000).  There had been no beginning or ending inventories. If labor costs comprise of 50 percent variable costs and 20 percent fixed costs, a 10 percent increase in wages and salaries would increase the number of units required to break even to?

Adobe Company sold 100,000 units of its product at P20 per unit.  Variable costs were P14 per unit, consisting of manufacturing costs of P11 and selling costs of P3.  Fixed costs, which were incurred uniformly throughout the year, amounted to P792,000 (manufacturing costs of P500,000 and selling expenses of P292,000).  There had been no beginning or ending inventories. If labor costs comprise of 50 percent variable costs and 20 percent fixed costs, a 10 percent increase in wages and salaries would increase the number of units required to break even to?

Financial And Managerial Accounting
Financial And Managerial Accounting
15th Edition
ISBN:9781337902663
Author:WARREN, Carl S.
Publisher:WARREN, Carl S.
Chapter20: Cost-volume-profit Analysis
Section: Chapter Questions
Problem 3CMA: Bolger and Co. manufactures large gaskets for the turbine industry. Bolgers per-unit sales price and...
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24. Adobe Company sold 100,000 units of its product at P20 per unit.  Variable costs were P14 per unit, consisting of manufacturing costs of P11 and selling costs of P3.  Fixed costs, which were incurred uniformly throughout the year, amounted to P792,000 (manufacturing costs of P500,000 and selling expenses of P292,000).  There had been no beginning or ending inventories.

If labor costs comprise of 50 percent variable costs and 20 percent fixed costs, a 10 percent increase in wages and salaries would increase the number of units required to break even to?

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