Find what is new break-even point in pesos

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Davao Company sells its only product at P30 per unit. Variable costs are P22 per unit and fixed costs are P100,000 per month.

Required: Treat each question independently from the others.

Question 1: What unit sales are required to earn P50,000 for the month?

Question 2: What sales, in pesos, are required to earn P50,000 for the month?

Question 3: Suppose Davao reduces its selling price to P28 because competitors are charging that amount. What is its new break-even point (a) in units and (b) in pesos?

Reference no: EM132620391

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