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.

  1. 5,000 units
  2. 4,500 units
  3. 3,000 units
  4. 6,000 units

Answer

A. 5,000 units

Solution

BEQ=150000/60-30=5,000 units.

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