Engineering Board Exam Reviewer · Break-Even Analysis · easy
A firm has fixed costs of P150,000, variable cost of P30 per unit, and sells units at P60 each. Find the break-even quantity.
- 5,000 units
- 4,500 units
- 3,000 units
- 6,000 units
Answer
A. 5,000 units
Solution
BEQ=150000/60-30=5,000 units.
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