Reference no: EM133109510

Question - Dimaano Company has analyzed the costs of producing and selling 5,000 units of its only product to be as follows:

Direct Materials 60,000

Direct Labor 40,000

Variable Factory Overhead 20,000

Fixed Factory Overhead 30,000

Variable Marketing & Admin Expenses 10,000

Fixed Marketing & Admin Expenses 15,000

Required -

1. Compute the number of units needed to breakeven at a per unit sales price of Php 38.50.

2. Determine the number of units that must be sold to produce an Php 18,000 profit, at a Php 40 per unit sales price.

3. Determine the price Dimaano must charge at a Php 5,000 unit sales level, to produce a profit equal to 20% of sales.