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

Micro Economics For Today

10th Edition

ISBN:9781337613064

Author:Tucker, Irvin B.

Publisher:Tucker, Irvin B.

Chapter7: Proudction Costs

Section: Chapter Questions

Problem 8SQP

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