In 2021, UC Company had a break-even point of Php750,000 based on a selling price of Php15 per unit and fixed costs of Php225,000. In 2022, the selling price and variable costs per unit did not change, but the break-even point increased to Php850,000. Compute the variable cost per unit for 2021.
Added by Brian M.
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Compute the variable cost per unit for 2021. First, we need to find the number of units sold at the break-even point in 2021. We can do this by dividing the break-even point by the selling price per unit: Break-even point (2021) = Php750,000 Selling price per Show more…
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