PROBLEM 2. Outlast Company's projected profit for the coming year follows: Per Unit Total P200,000 (120,000) 80,000 (64,000) P 16,000 Sales P20 Less: Variable costs (12) Contribution margin Less Fixed expenses P 8 Income Requirements: 1. Compute the breakeven point in units. How many units must be sold to earn a profit of P30,000? 3. Compute the additional profit that Outlast would eari sales were P25,000 more than expected. 2.

Entrepreneurial Finance
6th Edition
ISBN:9781337635653
Author:Leach
Publisher:Leach
Chapter4A: Nopat Breakeven: Revenues Needed To Cover Total Operating Costs
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PROBLEM 2. Outlast Company's projected profit for the
coming year follows:
Per Unit
Total
P200,000
(120,000)
80,000
(64,000)
P 16,000
Sales
P20
Less: Variable costs
(12)
Contribution margin
Less Fixed expenses
P 8
Income
Requirements:
1. Compute the breakeven point in units.
2. How many units must be sold to earn a profit of P30,000?
3. Compute the additional profit that Outlast would eari
sales were P25,000 more than expected.
Transcribed Image Text:PROBLEM 2. Outlast Company's projected profit for the coming year follows: Per Unit Total P200,000 (120,000) 80,000 (64,000) P 16,000 Sales P20 Less: Variable costs (12) Contribution margin Less Fixed expenses P 8 Income Requirements: 1. Compute the breakeven point in units. 2. How many units must be sold to earn a profit of P30,000? 3. Compute the additional profit that Outlast would eari sales were P25,000 more than expected.
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