Engineering Board Exam Reviewer · Engineering Management · medium
A firm has fixed costs of ₱120,000 and variable costs of ₱80 per unit. At what selling price will it break even at 4000 units?
- ₱110.00
- ₱80.00
- ₱30.00
- ₱130.00
Answer
A. ₱110.00
Solution
P = VC + FC/Q = 80 + 120,000/4000 = 80 + 30 = ₱110.00.
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