To solve this problem, we first need to understand the concept of break-even point. The break-even point is the point at which total revenue equals total costs, meaning the business is neither making a profit nor a loss.

Here are the steps to calculate the break-even point:

1. Calculate the selling price per unit: This is the total revenue divided by the number of units sold. In this case, P3,750,000 / 50 units = P75,000 per unit.

2. Calculate the variable cost per unit: This is the total variable costs divided by the number of units sold. In this case, P888,000 / 50 units = P17,760 per unit.

3. Calculate the contribution margin per unit: This is the selling price per unit minus the variable cost per unit. In this case, P75,000 - P17,760 = P57,240 per unit.

4. Calculate the break-even point in units: This is the total fixed costs divided by the contribution margin per unit. In this case, P1,000,000 / P57,240 ≈ 17.47 units.

Since we can't sell a fraction of a unit, we round up to the next whole number. So, the company needs to sell 18 units to break even.

Therefore, the correct answer is b. 18.

Question

To solve this problem, we first need to understand the concept of break-even point. The break-even point is the point at which total revenue equals total costs, meaning the business is neither making a profit nor a loss.

Here are the steps to calculate the break-even point:

1. Calculate the selling price per unit: This is the total revenue divided by the number of units sold. In this case, P3,750,000 / 50 units = P75,000 per unit.

2. Calculate the variable cost per unit: This is the total variable costs divided by the number of units sold. In this case, P888,000 / 50 units = P17,760 per unit.

3. Calculate the contribution margin per unit: This is the selling price per unit minus the variable cost per unit. In this case, P75,000 - P17,760 = P57,240 per unit.

4. Calculate the break-even point in units: This is the total fixed costs divided by the contribution margin per unit. In this case, P1,000,000 / P57,240 ≈ 17.47 units.

Since we can't sell a fraction of a unit, we round up to the next whole number. So, the company needs to sell 18 units to break even.

Therefore, the correct answer is b. 18.

Knowee AI · Accepted Answer

To solve this problem, we first need to understand the concept of break-even point. The break-even point is the point at which total revenue equals total costs, meaning the business is neither making a profit nor a loss.

Here are the steps to calculate the break-even point:

1. Calculate the selling price per unit: This is the total revenue divided by the number of units sold. In this case, P3,750,000 / 50 units = P75,000 per unit.

2. Calculate the variable cost per unit: This is the total variable costs divided by the number of units sold. In this case, P888,000 / 50 units = P17,760 per unit.

3. Calculate the contribution margin per unit: This is the selling price per unit minus the variable cost per unit. In this case, P75,000 - P17,760 = P57,240 per unit.

4. Calculate the break-even point in units: This is the total fixed costs divided by the contribution margin per unit. In this case, P1,000,000 / P57,240 ≈ 17.47 units.

Since we can't sell a fraction of a unit, we round up to the next whole number. So, the company needs to sell 18 units to break even.

Therefore, the correct answer is b. 18.

Consider the scenario below:A TV manufacturer and seller sold 50 units for a total of P3,750,000 worth of television sets for the month of August 2018. Fixed Expenses at P1,000,000 and Variable Expenses at P888,000.Compute for the units needed to break-even.Select one:a.16b.18c.21d.20

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