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  • Break Even Sample Problems

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    John Jet Tan
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    The document provides examples to calculate break-even points and profits for different manufacturing scenarios. For a health supplement manufacturer: - The break-even point is 225 units, where revenue from 225 units equals the fixed and variable costs. - Selling 300 units results in a profit of Php155,000. - Selling 442 units results in a profit of Php35,500. For student bakers: - The break-even point is 20 pastries, where revenue from 20 pastries equals the rental and baking costs. - Selling 200 pastries results in a profit of Php9,000.

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    The document provides examples to calculate break-even points and profits for different manufacturing scenarios. For a health supplement manufacturer: - The break-even point is 225 units, where revenue from 225 units equals the fixed and variable costs. - Selling 300 units results in a profit of Php155,000. - Selling 442 units results in a profit of Php35,500. For student bakers: - The break-even point is 20 pastries, where revenue from 20 pastries equals the rental and baking costs. - Selling 200 pastries results in a profit of Php9,000.

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    © All Rights Reserved
    Download as DOC, PDF, TXT or read online from Scribd
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    23 views2 pages

    Break Even Sample Problems

    Uploaded by

    John Jet Tan
    The document provides examples to calculate break-even points and profits for different manufacturing scenarios. For a health supplement manufacturer: - The break-even point is 225 units, where revenue from 225 units equals the fixed and variable costs. - Selling 300 units results in a profit of Php155,000. - Selling 442 units results in a profit of Php35,500. For student bakers: - The break-even point is 20 pastries, where revenue from 20 pastries equals the rental and baking costs. - Selling 200 pastries results in a profit of Php9,000.

    Copyright:

    © All Rights Reserved
    Download as DOC, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    of 2

    BREAK-EVEN

    1. A manufacturer can sell a certain health supplement for P1,200 per unit. Its total cost
    consists of a fixed overhead of Php 85,000 plus production costs of Php 400 per unit.
    a) How many units must the manufacturer sell to break even?

    BE =

    b) What is the manufacturer's profit or loss if 300 units are sold?


    Revenue = SP x Q = 1200x 300 Total Cost = Fixed Cost + (VC x Q)
    = 85000 + (400 (300))
    =Php 360,000 =85000 + 120000 = Php 205,000

    Profit =Revenue – Cost


    = Php 360,000 – 205,000= Php 155,000

    c) How many units must be sold for the manufacturer to realize a profit of Php 35,500?
    Profit = revenue – cost
    35,500 = 1200Q – ( 85,000 + 400Q)
    35,500 +85000 = 1200Q-400Q
    120500=800Q
    Q

    Q= =

    2. As part of their course requirement, a group of students bakes pastries and sells them. The
    rental for the oven is Php600 for a day and the baking costs add to roughly Php 30 per
    piece. The pastries can be sold for Php45 apiece.
    a) How many pieces must the students sell to break even?

    b) How many pieces must the students sell to make a profit of Php 9,000?
    Q= =

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