The annual fixed costs for a plant are PhP 100,000 and the variable costs are PhP 140, 000 with revenue of Php 280, 000. The selling price is PhP 40 per unit. 1. What is the unit variable cost? a. PhP 40 b. PhP 20 c. PhP 30 d. PhP 50 2. What is the break-even point in units of production? a.7,000 units b. 7,500 units c. 1,000 units d. 5,000 units It costs Bear Air PhP 1,200 to run a scheduled flight, empty or full, from Cold foot to Frostbite. Moreover, each passenger generates a cost of PhP 40. The regular ticket costs PhP 90. The plane holds 65 people, but it is running only about 20 per flight. The sales director has suggested selling introductory tickets for PhP 50 to people who have never flown Bear Air. What is the minimum number of introductory tickets that must be sold in order for a flight to breakeven? a. 5 b. 10 c. 15 d. 20

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The annual fixed costs for a plant are PhP 100,000 and the variable costs are PhP 140, 000 with revenue of Php
280, 000. The selling price is PhP 40 per unit.
1. What is the unit variable cost?
a. PhP 40 b. PhP 20 c. PhP 30 d. PhP 50
2. What is the break-even point in units of production?
a.7,000 units b. 7,500 units c. 1,000 units d. 5,000 units
It costs Bear Air PhP 1,200 to run a scheduled flight, empty or full, from Cold foot to Frostbite.
Moreover, each passenger generates a cost of PhP 40. The regular ticket costs PhP 90. The plane
holds 65 people, but it is running only about 20 per flight. The sales director has suggested selling
introductory tickets for PhP 50 to people who have never flown Bear Air. What is the minimum
number of introductory tickets that must be sold in order for a flight to breakeven?
a. 5
b. 10
c. 15
d. 20
Transcribed Image Text:The annual fixed costs for a plant are PhP 100,000 and the variable costs are PhP 140, 000 with revenue of Php 280, 000. The selling price is PhP 40 per unit. 1. What is the unit variable cost? a. PhP 40 b. PhP 20 c. PhP 30 d. PhP 50 2. What is the break-even point in units of production? a.7,000 units b. 7,500 units c. 1,000 units d. 5,000 units It costs Bear Air PhP 1,200 to run a scheduled flight, empty or full, from Cold foot to Frostbite. Moreover, each passenger generates a cost of PhP 40. The regular ticket costs PhP 90. The plane holds 65 people, but it is running only about 20 per flight. The sales director has suggested selling introductory tickets for PhP 50 to people who have never flown Bear Air. What is the minimum number of introductory tickets that must be sold in order for a flight to breakeven? a. 5 b. 10 c. 15 d. 20
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