In 2020, National Co. sold 3,000 units at P500 each. Variable expenses were P250 per unit, and fixed expenses were P150,000. The same selling price is expected for 2021. National Co is tentatively planning to invest in equipment that would increase fixed costs by 20%, while decreasing variable costs per unit by 20%. What is National Co.’s break-even point in units for 2021?
In 2020, National Co. sold 3,000 units at P500 each. Variable expenses were P250 per unit, and fixed expenses were P150,000. The same selling price is expected for 2021. National Co is tentatively planning to invest in equipment that would increase fixed costs by 20%, while decreasing variable costs per unit by 20%. What is National Co.’s break-even point in units for 2021?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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In 2020, National Co. sold 3,000 units at P500 each. Variable expenses were P250 per unit, and fixed expenses were P150,000. The same selling price is expected for 2021. National Co is tentatively planning to invest in equipment that would increase fixed costs by 20%, while decreasing variable costs per unit by 20%. What is National Co.’s break-even point in units for 2021?
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