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What is CVP Analysis and Break Even Calculations about?

The company produces a product that sells for ₱3,000 per unit. The variable cost per unit is ₱1,600 for materials, ₱700 for labor, and ₱200 for overhead, totaling ₱2,500. The monthly fixed cost is ₱90,000. To break even, the company needs to sell 36 units to cover the fixed costs. The contribution margin per unit is ₱500 and the contribution margin ratio is 16.7%. To break even in pesos, the company needs ₱108,000 in sales.

Author

joanna mercado

Language

EN