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Question - Dikit Corporation makes three different clothing fasteners. Data concerning the three products are as follows:
Velcro
Metal
Nylon
Normal Monthly Sales Volume
100,000
200,000
400,000
Unit Selling Price
P1.65
1.50
0.85
Variable Cost Per Unit
1.25
.70
0.25
Total fixed expenses are P400,000 per month. All three products are sold in highly competitive markets, so the company is unable to raise its prices without losing unacceptable number of customers. The company has an extremely lean production system, so there is no beginning or ending work in process or finished goods inventories. What is the company's over-all-break-even in pesos?
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