company's over-all break-even in pesos

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Dikit corporation makes three different clothing fasteners, Data concerning the three products are as follows:

                                                             VELCRO       METAL       NYLON

Normal monthly sales volume             100,000      200,000     400,000

Unit selling price                                   P1.65           P1.50          P0.85

Varoable cost per unit                            1.25             0.70             0.25

Total fixed expenses are P400,000 per month. All three products are sold in highly competitive markets, so the company is unable to raise its prices without losing unacceptable number of customers. The company has an extremely lean production system, so there is no beginning or ending work in process or finished goods inventories. What is the company's over-all break-even in pesos?

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