COST ACCOUNTING
COST VOLUME PROFIT ANALYSIS
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Question
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The Ferry Company plans to market a new product. Based on its market studies Ferry estimates that it can sell 5, 500 units in 2017. The selling price will be P 2 per unit. Variable Costs are estimated to be 40% of the selling price. Fixed Costs are estimated to be P 6, 000. What is the break even point?
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3, 750 units
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5, 000 units
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500 units
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7, 500 units
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Explanation:
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