# 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
icon
Related questions
Question
# 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.
Transcribed Image Text:# 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.
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 2 steps with 1 images

Blurred answer
Knowledge Booster
Cost of Production
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.
Similar questions
Recommended textbooks for you
ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
Economics
ISBN:
9780190931919
Author:
NEWNAN
Publisher:
Oxford University Press
Principles of Economics (12th Edition)
Principles of Economics (12th Edition)
Economics
ISBN:
9780134078779
Author:
Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher:
PEARSON
Engineering Economy (17th Edition)
Engineering Economy (17th Edition)
Economics
ISBN:
9780134870069
Author:
William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher:
PEARSON
Principles of Economics (MindTap Course List)
Principles of Economics (MindTap Course List)
Economics
ISBN:
9781305585126
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning
Managerial Economics: A Problem Solving Approach
Managerial Economics: A Problem Solving Approach
Economics
ISBN:
9781337106665
Author:
Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:
Cengage Learning
Managerial Economics & Business Strategy (Mcgraw-…
Managerial Economics & Business Strategy (Mcgraw-…
Economics
ISBN:
9781259290619
Author:
Michael Baye, Jeff Prince
Publisher:
McGraw-Hill Education