Piit Company currently sells 1,000 units of product M for P2 each.Variable costs are P1.50. A discount store has offered P1.70 per unit for 400units of product M. The managers believe that if they accept the specialorder, they will lose some sales at the regular price. Determine the numberof units they could lose before the order become unprofitable.160 units200 units400 units500 unitsWhat information should a company take into consideration whenmaking a decision on whether to add or drop a product line?Revenue and all expenses.Revenue and variable expenses only.Revenue, variable expenses, and avoidable fixed expenses.Revenue, variable expenses, and unavoidable fixed expenses.

Variable Cost - The total cost of production of a good comprises of the total fixed cost of…

Answered: Piit Company currently sells 1,0…

Piit Company currently sells 1,0 ariable costs are P1.50. A discou COL anits of product M. The manager= order, they will lose some sales at of units they could lose before th

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter3: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 7EB: Delta Co. sells a product for $150 per unit. The variable cost per unit is $90 and fixed costs are...

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Question

Piit Company currently sells 1,000 units of product M for P2 each.
Variable costs are P1.50. A discount store has offered P1.70 per unit for 400
units of product M. The managers believe that if they accept the special
order, they will lose some sales at the regular price. Determine the number
of units they could lose before the order become unprofitable.
160 units
200 units
400 units
500 units
What information should a company take into consideration when
making a decision on whether to add or drop a product line?
Revenue and all expenses.
Revenue and variable expenses only.
Revenue, variable expenses, and avoidable fixed expenses.
Revenue, variable expenses, and unavoidable fixed expenses.

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