# 1 .A company has a production capacity of 200 units per 200 units per month and its fixed costs are P20,000 per month the variable cost per unit is P300.00 and each unit can be sold for P450.00 Economy measures are instituted to reduce the fixed cost by 10 % and the variable cost by 20%. determine the old and new break- even points. Draw a break- even chart.

# 1 .A company has a production capacity of 200 units per 200 units per month and its fixed costs are P20,000 per month the variable cost per unit is P300.00 and each unit can be sold for P450.00 Economy measures are instituted to reduce the fixed cost by 10 % and the variable cost by 20%. determine the old and new break- even points. Draw a break- even chart.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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