The following price and cost data are given for Company E: Selling price per unit P25.00, Variable cost per unit P10.00 and Fixed Operating Costs P30,000.00. Calculate the break-even point and the the cash break-even point, assuming P5,000.00 of the firm's fixed cost is for depreciation.  a. 500 units and 467 units b. 1000 units and 857 units c. 1500 units and 1287 units d. 2000 units and 1,667 units e. 2500 units and 2187 units

EBK CONTEMPORARY FINANCIAL MANAGEMENT
14th Edition
ISBN:9781337514835
Author:MOYER
Publisher:MOYER
Chapter14: Capital Structure Management In Practice
Section14.A: Breakeven Analysis
Problem 7P
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The following price and cost data are given for Company E: Selling price per unit P25.00, Variable cost per unit P10.00 and Fixed Operating Costs P30,000.00. Calculate the break-even point and the the cash break-even point, assuming P5,000.00 of the firm's fixed cost is for depreciation. 


a. 500 units and 467 units
b. 1000 units and 857 units
c. 1500 units and 1287 units
d. 2000 units and 1,667 units
e. 2500 units and 2187 units

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