Answered: nd all other costs remain unchanged,…

Business

Accounting

nd all other costs remain unchanged, the break-even point in units will:

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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Question

The current sales price is P25 per unit and the current variable cost is P17 per unit. Fixed costs are P40,000. If the sales price is increased by P2, and all other costs remain unchanged, the break-even point in units will:

a.increase by 1,000 units

b.decrease by 1,000 units

c.decrease by 2,000 units

d.decrease by 119 units (rounded to nearest unit)

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