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Determine the break-even point in units and in pesos

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Question - ABC CO makes a product that sells for P420 per unit. Variable costs are P144 per unit and fixed costs total P3,840,000 annually. The company sold 68,000 units during the current year.

Required -

1. Determine the Unit Contribution Margin, contribution margin rate and variable cost rate.

2. Determine the Break-even point in units and in pesos.

3. Determine the Margin of safety in units and in pesos.

4. Determine the Margin of safety ratio.

Reference no: EM133116762

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