Wow Inc, in business since 2008, makes swimwear for professional athletes. Analysis of the firms financial records for the current year reveals the following: Average swimsuit selling price P70 Variable swimsuit expenses: Direct material P28 Direct labor P12 Variable overhead P8 Annual fixed cost Selling P10,000 Administrative P24,000 he company’s tax rate is 40 percent. Samantha Waters, company president, has asked you to help answer the following questions. a. What is the break-even point in number of swimsuits and in pesos?

Wow Inc, in business since 2008, makes swimwear for professional athletes. Analysis of the firms financial records for the current year reveals the following: Average swimsuit selling price P70 Variable swimsuit expenses: Direct material P28 Direct labor P12 Variable overhead P8 Annual fixed cost Selling P10,000 Administrative P24,000 he company’s tax rate is 40 percent. Samantha Waters, company president, has asked you to help answer the following questions. a. What is the break-even point in number of swimsuits and in pesos?

Principles of Cost Accounting

17th Edition

ISBN:9781305087408

Author:Edward J. Vanderbeck, Maria R. Mitchell

Publisher:Edward J. Vanderbeck, Maria R. Mitchell

Chapter10: Cost Analysis For Management Decision Making

Section: Chapter Questions

Problem 18E

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