What is the number of units the company must sell

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Reference no: EM132789969

Questions - Use the following information to answer

Selling price per unit - Php 17;

Fixed expenses: Selling and administrative - Php 130,000; Interest Expense - Php 10,000;

Variable Expenses: Cost of goods sold - Php 4; Selling and administrative - Php 7.

Q1. What is the break-even point in units?

a. 10,000

b. 14,000

c. 20,000

d. 0

Q2. If the company wants to earn a profit of Php 42,000 instead of breaking even, what is the number of units the company must sell?

a. 14,000

b. 18,200

c. 26,000

d. 0

Reference no: EM132789969

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