Total Fixed Cost (TFC)

𝐵𝑟𝑒𝑎𝑘𝑒𝑣𝑒𝑛 𝑄𝑢𝑎𝑛𝑡𝑖𝑡𝑦 (𝐵𝐸𝑄) =

𝑐𝑜𝑠 𝑉𝐶
Selling Price (SP) − 𝑉𝑎𝑟𝑖𝑎𝑏𝑙𝑒 ( )
𝑢𝑛𝑖𝑡 𝑈
TFC = Total Operating Expense Year 1, Php 324,000.00
SP = Php 25.00
VC/U = 30% of Selling Price, 25 x 0.30 = Php 7.50 per unit
TFC
𝐵𝐸𝑄 =
SP − 𝑉𝐶/𝑈
324,000
𝐵𝐸𝑄 =
25 − 7.50

BEQ = 18514.28 ͠ 18515 units