Sales (30,000units) P 150,000
Variable costs 100,800
Contribution margin P 49, 200
Fixed manufacturing costs24,000
Operating income P 25,200
Interest18,000
Earnings before taxes P 7,200
Taxes (at 31%)2,160
Net incomeP 5,040
Shares outstanding 600
The firms break-even point is
a. 4,800 units
b. 14,634 units
c. 7,142 units
d. 18,000 units.
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