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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. If Davao can sell 15,000 units in a particular month, what will be its income?
Question 2. What is the break-even point in units?
Question 3. What is the break-even point in pesos?
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