A tiny firm in Bulacan makes portable threshers for the area's palay growers. The shop can create each thresher for P1,800 in labour. Each unit has a material cost of P2,500. The variable expenses per unit are P650, whereas the annual fixed costs are P69,000. How many portable threshers must be built and sold per year to break even if each unit costs P7,800? Computes and a graphical solution can both be used to back up your response. (Please offer a COMPLETE and UNDERSTANDABLE answer.) Also, be sure to write legibly

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
icon
Related questions
Question

A tiny firm in Bulacan makes portable threshers for the area's palay growers. The shop can create each thresher for P1,800 in labour. Each unit has a material cost of P2,500. The variable expenses per unit are P650, whereas the annual fixed costs are P69,000. How many portable threshers must be built and sold per year to break even if each unit costs P7,800?

Computes and a graphical solution can both be used to back up your response.

(Please offer a COMPLETE and UNDERSTANDABLE answer.) Also, be sure to write legibly.) 

Expert Solution
steps

Step by step

Solved in 2 steps

Blurred answer
Knowledge Booster
Special order decisions
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education