Currently, a company has fixed costs of P32,500, a contribution ratio of 65%, and is selling its product for P12 per unit. If the sales price per unit is increased by P4, how much less will the break-even point in sales be when compared to the current condition?   a.P14,411   b.P13,414   c.P17,500   d.P 5,932

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Currently, a company has fixed costs of P32,500, a contribution ratio of 65%, and is selling its product for P12 per unit. If the sales price per unit is increased by P4, how much less will the break-even point in sales be when compared to the current condition?
 
a.P14,411

 
b.P13,414

 
c.P17,500

 
d.P 5,932

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