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A small-scale industry sells its products at P2.80 per unit. The variable cost is P1.80 per unit. The total fixed cost is P20,000.
Determine the following:
Problem a. The breakeven quantity and revenue
Problem b. The profit (or loss) at sales volume of P15,000 units.
Problem c. Make a diagram of the total cost, total revenue, and breakeven point linear relationship.
Problem d. How can profit be generated if there is a loss in (b)?
Problem e. Up to how much should the selling price per unit be increased or decreased to breakeven at 15,000, assuming that FC and UVC remain constant?
Problem f. TC when sales are 10,000 units
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