The NUBD Co. is expecting an increase in fixed costs by P78,750 upon moving their place of business to the downtown area. Likewise it is anticipating that the selling price per unit and the variable expenses will not change. At present, the sales volume necessary to breakeven is P750,000 but the expected increase in fixed costs, the sales volume necessary to breakeven will go up to P975,000. Based on these predictions, what would be the required peso sales to earn P35,000 in the coming year? * O P1,175,000 O P950,000 O P425,000 O P1,075,000
The NUBD Co. is expecting an increase in fixed costs by P78,750 upon moving their place of business to the downtown area. Likewise it is anticipating that the selling price per unit and the variable expenses will not change. At present, the sales volume necessary to breakeven is P750,000 but the expected increase in fixed costs, the sales volume necessary to breakeven will go up to P975,000. Based on these predictions, what would be the required peso sales to earn P35,000 in the coming year? * O P1,175,000 O P950,000 O P425,000 O P1,075,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:The NUBD Co. is expecting an increase in fixed costs by P78,750 upon moving their place of
business to the downtown area. Likewise it is anticipating that the selling price per unit and
the variable expenses will not change. At present, the sales volume necessary to breakeven is
P750,000 but the expected increase in fixed costs, the sales volume necessary to breakeven will
go up to P975,000. Based on these predictions, what would be the required peso sales to earn
P35,000 in the coming year? *
O P1,175,000
P950,000
P425,000
P1,075,000
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