LKBP Co. sells two products, Natasha and Bench. The company sells these products at the rate of 2 units of Natasha and 3 units of Bench. The contribution margin per unit of Natasha is P4 and of Bench is P2. The total fixed costs is P420,000. The selling price of Natasha is P10 and Bench is P8. Compute the following: a. Break-even point in pesos for Natasha. b. Break-even point is pesos for Bench.

LKBP Co. sells two products, Natasha and Bench. The company sells these products at the rate of 2 units of Natasha and 3 units of Bench. The contribution margin per unit of Natasha is P4 and of Bench is P2. The total fixed costs is P420,000. The selling price of Natasha is P10 and Bench is P8. Compute the following: a. Break-even point in pesos for Natasha. b. Break-even point is pesos for Bench.

Managerial Accounting

15th Edition

ISBN:9781337912020

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

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

Chapter6: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 3BE

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