Your business of household products manufacturing is about to start a venture to producing self-squeezing mops with an initial budget of Php

Question

Your business of household products manufacturing is about to start a venture to producing self-squeezing mops with an initial budget of Php 8,500,000.00. To be competitive in the market, the board plans to sell one unit for only Php 600.00 with a computed variable cost for each of Php 237.00. How many units of the mops shall represent the breakeven point?

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Ladonna 3 months 2021-07-19T22:29:41+00:00 1 Answers 19 views 0

Answers ( )

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    2021-07-19T22:31:11+00:00

    Answer:

    break-even point in units = 23,416 units (Approx.)

    Step-by-step explanation:

    Given:

    Initial budget of Php = 8,500,000

    Sales price of Php = 600

    Variable price of Php = 237

    Find:

    break-even point in units

    Computation:

    break-even point in units = Initial budget of Php / [Sales price of Php – Variable price of Php]

    break-even point in units = 8,500,000 / [600 – 237]

    break-even point in units = 8,500,000 / 363

    break-even point in units = 23,415.978

    break-even point in units = 23,416 units (Approx.)

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