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Question - Kristin us a distributor of brass picture frames. For 2020, the company plans to purchase for P30 each and sell them for P45 each. The company's fixed costs are expected to be P240,000. Its only other costs will be variable costs of P60 per shipment for preparing the invoice and delivery documents, organizing the delivery, and following up for collecting accounts receivable. The P60 cost will be incurred each time the company ships an order of picture frames, regardless of number of frames in order. Suppose Kristin sells 40,000 picture frames in 1,000 shipments in 2020, what is the Kristin operating income for 2020? Suppose Kristin sells 40,000 frames in 800 shipments in 2020, what is Kristins operating income for 2020? Suppose Kristin anticipates making 500 shipments in 2020, How many picture frames must be Kristin sell to break even in 2020?
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