The Rizal Marketing Company is expecting an increase of 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 with the expected increase in fixed costs, the sales volume necessary to breakeven would go up to P975,000. Based on these projections, what would be the total fixed costs before the increase of P78,750? Choices P262,500 P300,000 P183,750 P341,250
The Rizal Marketing Company is expecting an increase of 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 with the expected increase in fixed costs, the sales volume necessary to breakeven would go up to P975,000. Based on these projections, what would be the total fixed costs before the increase of P78,750? Choices P262,500 P300,000 P183,750 P341,250
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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The Rizal Marketing Company is expecting an increase of 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 with the expected increase in fixed costs, the sales volume necessary to breakeven would go up to P975,000. Based on these projections, what would be the total fixed costs before the increase of P78,750?
Choices
P262,500
P300,000
P183,750
P341,250
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