The variable cost per unit
for a notebook is ₱ 20.00 and the total fixed cost is ₱ 25,000. If  a total of 15,000 units were sold for a total
sales of ₱ 450,000.00, find the break-event point in units and in the amount of
sales.

To find the **break-even point (BEP)**, we need to calculate both the break-even point in units and the break-even point in sales amount. Here's how we can do this step-by-step:

### Given Data:
- Variable cost per unit = ₱ 20.00
- Fixed cost = ₱ 25,000.00
- Total units sold = 15,000 units
- Total sales = ₱ 450,000.00

First, let's compute the **selling price per unit**:

\[
\text{Selling price per unit} = \frac{\text{Total sales}}{\text{Total units sold}} = \frac{450,000}{15,000} = ₱ 30.00
\]

Now that we have the selling price per unit, we can move on to calculate the break-even point.

### 1. Break-even point in units (BEP units):
The break-even point in units can be calculated using the formula:

\[
\text{BEP units} = \frac{\text{Fixed cost}}{\text{Selling price per unit} - \text{Variable cost per unit}}
\]

Substituting the given values:

\[
\text{BEP units} = \frac{25,000}{30 - 20} = \frac{25,000}{10} = 2,500 \text{ units}
\]

### 2. Break-even point in sales (BEP sales):
The break-even point in sales can be calculated by multiplying the break-even units by the selling price per unit:

\[
\text{BEP sales} = \text{BEP units} \times \text{Selling price per unit}
\]

Substituting the values:

\[
\text{BEP sales} = 2,500 \times 30 = ₱ 75,000.00
\]

### Summary:
- **Break-even point in units** = 2,500 units
- **Break-even point in sales** = ₱ 75,000.00

Would you like more details on any step, or do you have any specific questions?

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Here are 5 related questions:
1. How does the break-even point change if the variable cost increases?
2. What happens to the break-even point if fixed costs rise?
3. Can we compute the profit if sales exceed the break-even point?
4. How is the contribution margin used in break-even analysis?
5. What are the implications of selling below the break-even point?

**Tip:** Monitoring variable costs and fixed costs regularly can help in adjusting pricing strategies to achieve a more favorable break-even point.

The variable cost per unit for a notebook is ₱ 20.00 and the total fixed cost is ₱ 25,000. If a total of 15,000 units were sold for a total sales of ₱ 450,000.00, find the break-even point in units and in the amount of sales.

Learn how to calculate the break-even point for notebooks with a variable cost of ₱ 20.00 per unit and a total fixed cost of ₱ 25,000. Find out how many units need to be sold and the total sales required to break even. Suitable for students in Grades 10-12.

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