Gucho company which is located in buenos aires argentina

Reference no: EM13579296

Gaucho Company, which is located in Buenos Aires, Argentina, manufactures a component used in farm machinery. The firm´s fixed costs are 2,000,000 pesos per year. The variable cost of each component is 1,000pesos, and the components are sold for 1,500 pesos each. The company sold 7,000 components during the prior year. (P denotes peso). Several countries use the peso as their monetary unit. The Argentina's peso is worth 0.192 US dollar. (In the following requirements ignore income taxes). What will the new break-even point be if fixed costs increase 5%?

Reference no: EM13579296

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