Engineering Board Exam Reviewer · Break-Even Analysis · medium
A company wants to earn a profit of P100,000 in addition to covering fixed costs of P250,000. If the unit contribution margin is P25, find the required sales volume.
- 14,000 units
- 10,000 units
- 15,000 units
- 12,000 units
Answer
A. 14,000 units
Solution
Required volume = FC+ ProfitCM=250000+100000/25=14,000 units.
More Break-Even Analysis questions
- Define "contribution margin" in break-even analysis.
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