A company has a production capacity of 500 units per month and its fixed costs are ₱250000 per month. The variable costs per unit are ₱1,150 each and each unit can be sold for ₱2000. Economy measured are instituted to reduce the fixed cost by 20% and variable cost by 10%. Determine the old and new break even points. What are the old and new profit at 100% capacity
A company has a production capacity of 500 units per month and its fixed costs are ₱250000 per month. The variable costs per unit are ₱1,150 each and each unit can be sold for ₱2000. Economy measured are instituted to reduce the fixed cost by 20% and variable cost by 10%. Determine the old and new break even points. What are the old and new profit at 100% capacity
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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A company has a production capacity of 500 units
per month and its fixed costs are ₱250000 per month.
The variable costs per unit are ₱1,150 each and each
unit can be sold for ₱2000. Economy measured are
instituted to reduce the fixed cost by 20% and
variable cost by 10%. Determine the old and new
break even points. What are the old and new profit at
100% capacity?
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