. Ethan Corporation budgets fixed expenses of $250,000: variable expenses of $180,000 and a sale of 15,000 units for $28 each. If the Company could increase its selling price by $2 each and decrease its variable expenses to $150,000, the number of units to be sold in order to breakeven would be * a. 12,500 units b. 13,889 units c. 12,863 units d. 14,463 units

Cornerstones of Cost Management (Cornerstones Series)
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Author:Don R. Hansen, Maryanne M. Mowen
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Chapter16: Cost-volume-profit Analysis
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1. Ethan Corporation budgets fixed expenses of $250,000: variable expenses of $180,000 and a sale of 15,000 units for $28 each. If the Company could increase its selling price by $2 each and decrease its variable expenses to $150,000, the number of units to be sold in order to breakeven would be *

a. 12,500 units

b. 13,889 units

c. 12,863 units

d. 14,463 units

 

2, C2 Company had sales of Php576,000 and variable costs of Php324,000. Fixed costs amount to Php96,000 from an expected production of 7,200 units. If the company expects to increase its sales by 960 units by incurring an additional Php24,000 for advertising expense, what will happen to profit?

Group of answer choices:

a. Increase of Php33,600

b. Decrease of Php33,600

c. Decrease of Php9,600

d. Increase of Php9,600

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