Given: Fixed Cost =P 14,000,000.00; Variable Cost = P 8,750.00 / Unit; Selling Price = 15,000.00/ Unit 3D a. What is the Present Break-Even Number of Units?" b. What should be the New Selling Price in order that the New Break Even Number of Units shall just be 90% of the Present Break Even Number of Units?

Managerial Economics: A Problem Solving Approach
5th Edition
ISBN:9781337106665
Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Chapter5: Investment Decisions: Look Ahead And Reason Back
Section: Chapter Questions
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2. Given: Fixed Cost = P 14,000,000.00; Variable Cost = P 8,750.00 / Unit; Selling Price = 15,000.00 / Unit
a. What is the Present Break-Even Number of Units?"
b. What should be the New Selling Price in order that the New Break Even Number of Units shall just be 90% of the Present Break Even Number of Units?
Transcribed Image Text:2. Given: Fixed Cost = P 14,000,000.00; Variable Cost = P 8,750.00 / Unit; Selling Price = 15,000.00 / Unit a. What is the Present Break-Even Number of Units?" b. What should be the New Selling Price in order that the New Break Even Number of Units shall just be 90% of the Present Break Even Number of Units?
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