Sales (30,000units)                                                                  P 150,000            Variable costs                                                                  100,800            Contribution margin                                                    P   49, 200            Fixed manufacturing costs                                                24,000            Operating income                                                        P   25,200            Interest                                                                              18,000           Earnings before taxes                                                 P      7,200           Taxes (at 31%)                                                                     2,160           Net income                                                                  P 5,040                         Shares outstanding                                                          600 The firms break-even point is a. 4,800 units b. 14,634 units c. 7,142 units d. 18,000 units.

Principles of Accounting Volume 2
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ISBN:9781947172609
Author:OpenStax
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Chapter3: Cost-volume-profit Analysis
Section: Chapter Questions
Problem 14EB: Company A has current sales of $4,000,000 and a 45% contribution margin. Its fixed costs are...
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Sales (30,000units)                                                                  P 150,000

           Variable costs                                                                  100,800

           Contribution margin                                                    P   49, 200

           Fixed manufacturing costs                                                24,000

           Operating income                                                        P   25,200

           Interest                                                                              18,000

          Earnings before taxes                                                 P      7,200

          Taxes (at 31%)                                                                     2,160

          Net income                                                                  P 5,040              

          Shares outstanding                                                          600

The firms break-even point is

a. 4,800 units

b. 14,634 units

c. 7,142 units

d. 18,000 units.

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