3. Breakeven Analysis: A company has a production capacity of 600 units per month and its fixed costs are P270000 a month. The variable costs per unit are P1,150 and each unit can be sold for P2,000. Economy measures are instituted to reduce the fixed costs by 10 percent and the variable costs by 20 percent. Determine the old and the new break-even points. What are the old and the new profit at 100 percent capacity?
3. Breakeven Analysis: A company has a production capacity of 600 units per month and its fixed costs are P270000 a month. The variable costs per unit are P1,150 and each unit can be sold for P2,000. Economy measures are instituted to reduce the fixed costs by 10 percent and the variable costs by 20 percent. Determine the old and the new break-even points. What are the old and the new profit at 100 percent capacity?
Chapter1: Making Economics Decisions
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Transcribed Image Text:3. Breakeven Analysis: A company has a production capacity of 600 units per month and
its fixed costs are P270000 a month. The variable costs per unit are P1,150 and each unit
can be sold for P2,000. Economy measures are instituted to reduce the fixed costs by 10
percent and the variable costs by 20 percent. Determine the old and the new break-even
points. What are the old and the new profit at 100 percent capacity?
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