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BM1915

NAME: DATE: SCORE:

ACTIVITY

XYZ Company plans to introduce a new product in August. Information on selling price and related costs for the
new product is shown below:

Selling price per unit P36.00


Variable cost per unit:
Direct materials 15.00
Direct labor 9.00
Manufacturing overhead 4.00
Sales commission 2.00
Monthly fixed costs:
Manufacturing overhead P40,000
Administrative cost 32,000
Actual units produced 15,000

Required:
a. Break-even point in units
b. Break-even point in pesos
c. Margin of safety in units
d. Margin of safety in pesos
e. Desired sales in units to earn a profit of P12,000
f. Desired sales in pesos to earn a profit of P12,000

04 Activity 1 *Property of STI


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