A company sold 25,000 units of product last year. The contribution margin per unit was ₱2, and fixed expenses totaled ₱40,000 for the year. These fixed expenses are expected to increase to ₱45,000 this year, but the contribution margin per unit will remain unchanged at ₱2. How many units must be sold to earn the same net operating income (ignoring tax) as it was earned last year? a. 22,500 b. 27,500 c. 35,000 d. 2,500 e. 20,000
A company sold 25,000 units of product last year. The contribution margin per unit was ₱2, and fixed expenses totaled ₱40,000 for the year. These fixed expenses are expected to increase to ₱45,000 this year, but the contribution margin per unit will remain unchanged at ₱2. How many units must be sold to earn the same net operating income (ignoring tax) as it was earned last year? a. 22,500 b. 27,500 c. 35,000 d. 2,500 e. 20,000
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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A company sold 25,000 units of product last year. The contribution margin per unit was ₱2, and fixed expenses totaled ₱40,000 for the year. These fixed expenses are expected to increase to ₱45,000 this year, but the contribution margin per unit will remain unchanged at ₱2. How many units must be sold to earn the same net operating income (ignoring tax) as it was earned last year?
a. 22,500
b. 27,500
c. 35,000
d. 2,500
e. 20,000
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