Company A has a fixed expenses of 15000 per year and each unit of product has a Php 0.002 variable cost. Company B has a fixed expenses of 5000 per year and can produce the same unit of product at Php 0.05 variable cost. At what number unit of annual production will Company A if they have the same overall cost as Company B?

Company A has a fixed expenses of 15000 per year and each unit of product has a Php 0.002 variable cost. Company B has a fixed expenses of 5000 per year and can produce the same unit of product at Php 0.05 variable cost. At what number unit of annual production will Company A if they have the same overall cost as Company B?

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter2: Building Blocks Of Managerial Accounting

Section: Chapter Questions

Problem 8EA: Suppose that a company has fixed costs of $18 per unit and variable costs $9 per unit when 15,000...

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