Levi Company has revenues of P500,000, variable costs of P300,000, and pretax profit of P150,000. If the company increases the sales price per unit by 10% and reduces fixed costs by 20%, and leave the variable cost per unit unchanged, what would be the new breakeven point in pesos?

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Levi Company has revenues of P500,000, variable costs of P300,000, and pretax profit of P150,000. If the company increases the sales price per unit by 10% and reduces fixed costs by 20%, and leave the variable cost per unit unchanged, what would be the new breakeven point in pesos?

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