Shalom Company projects the following operating results next year:

Produced 70,000 units

Sales 60,000 units

Sales price 10 per unit

Total fixed cost 300,000 per year

Total variable cost 20% of sales

Variable selling and administrative expense 0.60 per unit

Fixed selling and administrative expense 160,000 per year

Compute the following:

(1) Break-even point in sales.

(2) Units that the company must sell to earn profit of P388,000.

(3) Fixed manufacturing overhead per unit.

(4) Income/(loss) under Variable Costing.

(5) Income/(loss) under Absorption Costing.

Answer rating: 100% (QA)

1To compute the given values well use the provided information Breakeven point in sales The breakeven point is the level of sales where the companys t... View the full answer