Alawi Company currently sells 10,000 units of product M for P 18.00 each. Variable costs are P 8.00 per unit. A discount store has offered P 16.00 for 4,000 units of product M. The managers believe that if they accept the special order, they will lose some sales at the regular price. Determine the number of units Alawi could lose before the order became unprofitable. a. 2,000 units b. 2,667 units c. 3,200 units d. 5,000 units

Alawi Company currently sells 10,000 units of product M for P 18.00 each. Variable costs are P 8.00 per unit. A discount store has offered P 16.00 for 4,000 units of product M. The managers believe that if they accept the special order, they will lose some sales at the regular price. Determine the number of units Alawi could lose before the order became unprofitable. a. 2,000 units b. 2,667 units c. 3,200 units d. 5,000 units

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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