Sales 100% Cost of sales Variable 50% Fixed 10% 60% Gross profit 40% Operating Expenses Variable 20% Fixed 15% 35% Operating Income 5% For the coming year, the expected total sales amounts to P19.50 million. In pesos, how much should be the break-even sales?

Sales 100% Cost of sales Variable 50% Fixed 10% 60% Gross profit 40% Operating Expenses Variable 20% Fixed 15% 35% Operating Income 5% For the coming year, the expected total sales amounts to P19.50 million. In pesos, how much should be the break-even sales?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

Sales
100%
Cost of sales
Variable
50%
Fixed
10%
60%
Gross profit
40%
Operating Expenses
Variable
20%
Fixed
15%
35%
Operating Income
5%
For the coming year, the expected total sales amounts to P19.50 million. In pesos, how much
should be the break-even sales?

Standard
Deluxe
Sales
P450,000
P50,000
Variable expenses (total)
P360,000
P20,000
If ERD expects to incur P57,600 in fixed expenses next year, its break-even point must be:

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