Dikit Corporation makes three different clothing fasteners. Data concerning the three products are as follows: METAL NYLON 200,000.00 1.50 P 0.70 P VELCRO Normal monthly sales volume 100,000.00 1.65 P 1.20 P 400,000.00 Unit selling price 0.85 Variable cost per unit 0.25 Total fixed expenses are P400,000 per month. All three products are sold in highly competitive markets, so the company is unable to raise its prices without losing unacceptable number of customers. The company has an extremely lean production system, so there is no beginning or ending work in process or finished goods inventories. What is the company's over-all break-even point in pesos?

Dikit Corporation makes three different clothing fasteners. Data concerning the three products are as follows: METAL NYLON 200,000.00 1.50 P 0.70 P VELCRO Normal monthly sales volume 100,000.00 1.65 P 1.20 P 400,000.00 Unit selling price 0.85 Variable cost per unit 0.25 Total fixed expenses are P400,000 per month. All three products are sold in highly competitive markets, so the company is unable to raise its prices without losing unacceptable number of customers. The company has an extremely lean production system, so there is no beginning or ending work in process or finished goods inventories. What is the company's over-all break-even point in pesos?

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter11: Differential Analysis And Product Pricing

Section: Chapter Questions

Problem 16E

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