A company produces 500,000 units of a product per year and are being sold for P4,000,000. It incurs annual fixed operating expenses of P680,000. The unit cost of the product is P3.00. Determine the number of units to be sold to break even.

A company produces 500,000 units of a product per year and are being sold for P4,000,000. It incurs annual fixed operating expenses of P680,000. The unit cost of the product is P3.00. Determine the number of units to be sold to break even.

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter3: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 6MC: If a company has fixed costs of $6.000 per month and their product that sells for $200 has a...

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Question

A company produces 500,000 units of a product per year and are being sold for
P4,000,000. It incurs annual fixed operating expenses of P680,000. The unit cost of the
product is P3.00. Determine the number of units to be sold to break even.

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