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Forbes Company's product sells for P16 and has a variable cost per unit of P12. Fixed costs are P120,000.
Required:
Problem 1. Compute the break-even point in pesos.
Problem 2. Compute the number of units required to earn a P30,000 profit.
Problem 3. Forbes has a target profit of P36,000 and expects to sell 30,000 units. Compute the selling price Forbes must charge to earn the target profit.
Problem 4. Forbes wants to keep its selling price at P16 per unit and earn a 10% return on sales. Calculate the number of units Forbes must sell to meet the target.
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