SadBoi, Inc. produces high quality water-proof tissue papers. Mr. Ramos, Sadboi's Managerial Accountant, has developed an annual formula using observations from the production of 10,000 to 25,000 units to estimate its production costs; Y = P960,000 + P93(x). He sells each roll for P170. Commissions paid to sales agents are 10% of sales. Sadboi's monthly fixed costs are as follows:

• Overhead costs - P80,000
• Selling and administrative expenses - P20,000.

1.) How much is the break-even point in sales?

2.)Assuming the Company is currently producing 23,000, how much is the percentage increase in profit if units sold increases by 40% for the following year?

Answer rating: 100% (QA)

1 Breakeven point in sales Given Fixed costs Overhead costs Selling and administrative expenses P800... View the full answer