A company has a production capacity of 1100 units a year and its fixed costs are P60k. The variable cost per unit is P500 & each unit can be sold for P800. What if fixed costs is increased to P75k and the variable costs is reduced by 20%, what is new break-even point in units. A. 198 B. 188 C.178 D. 180
A company has a production capacity of 1100 units a year and its fixed costs are P60k. The variable cost per unit is P500 & each unit can be sold for P800. What if fixed costs is increased to P75k and the variable costs is reduced by 20%, what is new break-even point in units. A. 198 B. 188 C.178 D. 180
Chapter6: Proudction Costs
Section: Chapter Questions
Problem 8SQP
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A company has a production capacity of 1100 units a year and its fixed costs are P60k. The variable cost per unit is P500 & each unit can be sold for P800. What if fixed costs is increased to P75k and the variable costs is reduced by 20%, what is new break-even point in units.
A. 198
B. 188
C.178
D. 180
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