To compute for the break-even sales, we first need to know the contribution margin per unit. This is calculated by subtracting the variable cost per unit from the selling price per unit.

First, let's find out the selling price per unit:
Total sales / Number of units sold = Selling price per unit
P3,750,000 / 50 = P75,000

Next, let's find out the variable cost per unit:
Total variable expenses / Number of units sold = Variable cost per unit
P888,000 / 50 = P17,760

Now, we can calculate the contribution margin per unit:
Selling price per unit - Variable cost per unit = Contribution margin per unit
P75,000 - P17,760 = P57,240

Finally, we can calculate the break-even sales by dividing the total fixed expenses by the contribution margin per unit:
Total fixed expenses / Contribution margin per unit = Break-even sales
P1,000,000 / P57,240 = approximately 17.47 units

However, since we can't sell a fraction of a unit, we'll need to sell 18 units to cover the fixed expenses.

To find the break-even sales in pesos, we multiply the break-even units by the selling price per unit:
18 units * P75,000/unit = P1,350,000

So, the break-even sales is P1,350,000. The correct answer is (d) P1,350,000.

Question

To compute for the break-even sales, we first need to know the contribution margin per unit. This is calculated by subtracting the variable cost per unit from the selling price per unit.

First, let's find out the selling price per unit:
Total sales / Number of units sold = Selling price per unit
P3,750,000 / 50 = P75,000

Next, let's find out the variable cost per unit:
Total variable expenses / Number of units sold = Variable cost per unit
P888,000 / 50 = P17,760

Now, we can calculate the contribution margin per unit:
Selling price per unit - Variable cost per unit = Contribution margin per unit
P75,000 - P17,760 = P57,240

Finally, we can calculate the break-even sales by dividing the total fixed expenses by the contribution margin per unit:
Total fixed expenses / Contribution margin per unit = Break-even sales
P1,000,000 / P57,240 = approximately 17.47 units

However, since we can't sell a fraction of a unit, we'll need to sell 18 units to cover the fixed expenses.

To find the break-even sales in pesos, we multiply the break-even units by the selling price per unit:
18 units * P75,000/unit = P1,350,000

So, the break-even sales is P1,350,000. The correct answer is (d) P1,350,000.

Knowee AI · Accepted Answer