Answered: Given a selling price of P120; CM at…

Given a selling price of P120; CM at 25% and fixed costs at P250,000, variable costs at break-even will be: a.) P350,000 b.) P750,000 c.) P450,000 d.) P250,000

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter16: Capital Structure Decisions

Section: Chapter Questions

Problem 1P

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Concept explainers

Pricing

Pricing is used as a term in finance and economics, pricing is the process of fixing a value for a product or a service. Pricing establishes a value for a product or service that the customer has to pay. A business can choose from different strategies while deciding to set prices.

Question

9. Given a selling price of P120; CM at 25% and fixed costs at P250,000, variable costs at break-even will be:

a.) P350,000 b.) P750,000 c.) P450,000 d.) P250,000

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