In planning its operations for the year based on sales forecast of P 6,000,000, the company prepared the following estimated data: Cost and expenses Variable Fixed Direct materials P 1,600,000 Direct labor 1,400,000 Factory overhead 600,000 900,000 Selling expenses 240,000 360,000 Administrative expenses 60,000 140,000 P 3,900,000 P 1,400,000 What would be the amount of sales in pesos at the break- even point? a. P2,250,000 c. P4,000,000 b. P3,500,000 d. P5,300,000

Practical Management Science
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ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
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In planning its operations for the year based on sales forecast of P 6,000,000, the company prepared the following estimated data:
Cost and expenses
Variable
Fixed
Direct materials
P 1,600,000
Direct labor
1,400,000
Factory overhead
600,000
900,000
Selling expenses
240,000
360,000
Administrative expenses
60,000
140,000
P 3,900,000
P 1,400,000
What would be the amount of sales in pesos at the break- even point?
a. P2,250,000
c. P4,000,000
b. P3,500,000
d. P5,300,000

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