A small-scale industry sells its products at P2.80 per unit. The variable cost is P1.80 per unit. The total fixed cost is P20,000. Determine the following: The break-even quantity and revenue The profit (or loss) at a sales volume of P15,000 units How can profit be generated if there is a loss in (b) Up to how much should the selling price per unit be increased or decreased to break-even at 15,000, assuming that FC and UVC remain constan
A small-scale industry sells its products at P2.80 per unit. The variable cost is P1.80 per unit. The total fixed cost is P20,000. Determine the following: The break-even quantity and revenue The profit (or loss) at a sales volume of P15,000 units How can profit be generated if there is a loss in (b) Up to how much should the selling price per unit be increased or decreased to break-even at 15,000, assuming that FC and UVC remain constan
Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)
14th Edition
ISBN:9781305506381
Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Chapter9: Applications Of Cost Theory
Section: Chapter Questions
Problem 5E
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- A small-scale industry sells its products at P2.80 per unit. The variable cost is P1.80 per unit. The total fixed cost is P20,000.
Determine the following:
- The break-even quantity and revenue
- The profit (or loss) at a sales volume of P15,000 units
- How can profit be generated if there is a loss in (b)
- Up to how much should the selling price per unit be increased or decreased to break-even at 15,000, assuming that FC and UVC remain constant.
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