NUBD Co. developed the following information for the year ended December 31, 2021: Product A 4,000 Product B 6,000 Total Units sold 10,000 Sales Variable costs Contribution margin Fixed costs P12,000 (6,000) P6,000 P27,000 (15,000) P12,000 P39,000 (21,000) 18,000 (12,600) P5.400 Net income
NUBD Co. developed the following information for the year ended December 31, 2021: Product A 4,000 Product B 6,000 Total Units sold 10,000 Sales Variable costs Contribution margin Fixed costs P12,000 (6,000) P6,000 P27,000 (15,000) P12,000 P39,000 (21,000) 18,000 (12,600) P5.400 Net income
Survey of Accounting (Accounting I)
8th Edition
ISBN:9781305961883
Author:Carl Warren
Publisher:Carl Warren
Chapter12: Differential Analysis And Product Pricing
Section: Chapter Questions
Problem 1SEQ: Mario Company is considering discontinuing a product. The costs of the product consist of $20,000...
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Question
If the sales mix changes to 5,000 units of Product A and 5,000 units of Product B, the effect on the company’s break-even point will ____ units
increase by 200
decrease by 200
increase by 1,200
no change
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