Reference no: EM132796653

Question - Use the following information to answer questions:

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.

Required -

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

a. 10,000

b. 14,000

c. 20,000

d. 0

2. 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