Thomas Company sells products XXX, YYY and ZZZ. Thomas sells three units of XXX for each unit of ZZZ, and two units of YYY for each unit of XXX. The contribution margins are P1.00 per unit of XXX, P1.50 per unit of YYY, and P3.00 per unit of ZZZ. The fixed costs are P600,000. 

1. How many units of XXX would Thomas sell at the breakeven point? 

2. Assume the following facts: Selling price of P1.75 per unit. Fixed Costs of P86,730. Variable costs of P1.40 per unit. The sales volume necessary to earn a profit of P70,000 before income tax is?

3. Again & Again Company had sales of P3,000,000, variable costs of P1,800,000 and fixed cost of P800,000 for Product RR. What would be the amount of sales pesos at breakeven?

Answer rating: 100% (QA)

To answer the questions we can use the breakeven point formula Breakeven Point in units Fixed Costs ... View the full answer