A factory with capacity of 700,000 units per year operates at 62% capacity. The annual income is P21,500,000, annual fixed costs are P9,500,000, and the variable costs are P17.4 per unit. (a) what is the current profit or loss (b) what is the break-even point?

A factory with capacity of 700,000 units per year operates at 62% capacity. The annual income is P21,500,000, annual fixed costs are P9,500,000, and the variable costs are P17.4 per unit. (a) what is the current profit or loss (b) what is the break-even point?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

A factory with capacity of 700,000 units per year operates at 62% capacity. The annual income
is P21,500,000, annual fixed costs are P9,500,000, and the variable costs are P17.4 per unit. (a)
what is the current profit or loss (b) what is the break-even point?

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