Problem 1 The TAN Company plans to market a new product. Based on its market studies, BEP estimates that it can sell 70,000 units in 2014. The selling price per unit is P2.00. Variable cost ratio is 40% of sales. Fixed costs are estimated to be P60, 000. REQUIRED: Compute the break-even point In Units b) In Sales pesos. a)
Problem 1 The TAN Company plans to market a new product. Based on its market studies, BEP estimates that it can sell 70,000 units in 2014. The selling price per unit is P2.00. Variable cost ratio is 40% of sales. Fixed costs are estimated to be P60, 000. REQUIRED: Compute the break-even point In Units b) In Sales pesos. a)
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 23E
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