Post-Assessment Profit and Loss Analysis

The annual fixed expenses to run your manufacturing business are ₱750,000 and the variable cost is ₱375 per unit. The selling price of your product is ₱500 per unit. The number of units to be sold to break even is ________.

• 4000

• 5000

• 6000

• 7000

The determination of the number of units that must be produced and sold to equate total sales with total cost.

• Yearly Volume

• Break-Even Analysis

• Break-Even Sales

• Break-Even Point

It is a cost that is independent of the volume of units produced. It will remain the same regardless of the volume of sales.

• Profit

• Volume

• Variable Cost

• Fixed Cost

What is a business doing at the break-even point?

• Making neither a profit nor a loss

• Making a loss

• Producing the startup output

• Making a profit

When a business never reaches the BEP, what will happen to that business?

• loss and have to gain their profit by making the lower selling price

• loss and the possibility to stop the business

• surplus and they gain more sales because lower from BEP

• volume up and lowering price per unit