ABD Company publishes Imaginative Mystery. Last year the book of puzzles sold for PhP500 with variable operating cost per book of PhP400 and fixed operating costs of PhP2,000,000. How many books must ABD sell this year to achieve the breakeven point for the stated operating costs, given the following different circumstances? All figures remain the same as for last year. а. b. Fixed operating costs increase to PhP2,200,000; all other figures remain the same. с. The selling price increases to PhP525; all costs remain the same as for last year.

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
Section: Chapter Questions
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ABD Company publishes Imaginative Mystery. Last year the book of puzzles sold for PHP500
with variable operating cost per book of PhP400 and fixed operating costs of
PHP2,000,000. How many books must ABD sell this year to achieve the breakeven point
for the stated operating costs, given the following different circumstances?
а.
All figures remain the same as for last year.
b. Fixed operating costs increase to PhP2,200,000; all other figures remain the same.
c. The selling price increases to PhP525; all costs remain the same as for last year.
d. Variable operating cost per book increases to PHP425; all other figures remain the same
as for last year.
С.
е.
What conclusions about the operating breakeven point can be drawn from your
answers in letters a to d?
Transcribed Image Text:ABD Company publishes Imaginative Mystery. Last year the book of puzzles sold for PHP500 with variable operating cost per book of PhP400 and fixed operating costs of PHP2,000,000. How many books must ABD sell this year to achieve the breakeven point for the stated operating costs, given the following different circumstances? а. All figures remain the same as for last year. b. Fixed operating costs increase to PhP2,200,000; all other figures remain the same. c. The selling price increases to PhP525; all costs remain the same as for last year. d. Variable operating cost per book increases to PHP425; all other figures remain the same as for last year. С. е. What conclusions about the operating breakeven point can be drawn from your answers in letters a to d?
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