5. A ceramics manufacturer sold cups last year for P7.50 each. Variable costs of manufacturing were P2.25 per unit. The company needed to sell 20,000 cups to break even. Net income was P5,040. This year, the company expects the price per cup to be P9.00; variable manufacturing costs to increase 33.3%; and fixed costs to increase 10%. How many cups (rounded) does the company need to sell this year to breakeven? * O 17,111 O 17,500 O 19,250 O 25,667

ENGR.ECONOMIC ANALYSIS
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Chapter1: Making Economics Decisions
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5. A ceramics manufacturer sold
cups last year for P7.50 each.
Variable costs of manufacturing
were P2.25 per unit. The
company needed to sell 20,000
cups to break even. Net income
was P5,040. This year, the
company expects the price per
cup to be P9.O0; variable
manufacturing costs to increase
33.3%; and fixed costs to
increase 10%. How many cups
(rounded) does the company
need to sell this year to
breakeven? *
O 17,111
O 17,500
O 19,250
O 25,667
Transcribed Image Text:5. A ceramics manufacturer sold cups last year for P7.50 each. Variable costs of manufacturing were P2.25 per unit. The company needed to sell 20,000 cups to break even. Net income was P5,040. This year, the company expects the price per cup to be P9.O0; variable manufacturing costs to increase 33.3%; and fixed costs to increase 10%. How many cups (rounded) does the company need to sell this year to breakeven? * O 17,111 O 17,500 O 19,250 O 25,667
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