distributor  of brass picture frames for P45. For 2022, she plans  to purchase for P30 each and sell them  for P45 each. Kristine's fixed costs are expected  to be P240,000. Kristine's  only other costs  will be variable costs of P60 per

Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter2: Building Blocks Of Managerial Accounting
Section: Chapter Questions
Problem 12EA: Markson and Sons leases a copy machine with terms that include a fixed fee each month of $500 plus a...
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8. Kristine is distributor  of brass picture frames for P45. For 2022, she plans  to purchase for P30 each and sell them  for P45 each. Kristine's fixed costs are expected  to be P240,000. Kristine's  only other costs
 will be variable costs of P60 per shipment  for preparing the invoice and delivery documents, organizing the delivery , and following up for collecting accounts receivable. The P60 cost will be  incurred each time Kristine ships an order of picture frames, regardless of the number of frames in the  order. Suppose Kristine anticipates making 500 shipments in 2022. How many picture frames  must Kristine sell to break even in 2022?

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