Engineering Board Exam Reviewer · Break-Even Analysis · easy
A company has fixed costs of P200,000 per year and variable cost of P50 per unit. If the selling price is P90 per unit, find the break-even quantity.
- 5,000 units
- 4,000 units
- 2,500 units
- 5,500 units
Answer
A. 5,000 units
Solution
BEQ=FC/SP-VC=200000/90-50=5,000 units.
More Break-Even Analysis questions
- Using the data above (FC=P200,000, VC=P50, SP=P90), find the total revenue at the break-even point.
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