Chapter4: Economic Evaluation In Health Care
Section: Chapter Questions
Problem 7QAP
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Question
A firm has production capacity of 500 refrigerators per month and its fixed costs are P2,750,000 a month. The variable cost per unit is P11,500 and each unit can be sold for P20,000. Economic measures are instituted to reduce the fixed costs by 10% and the variable costs by 15%.
- Determine the old and new profits at 100% capacity.
- Determine the old and new breakeven points.
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