Reference no: EM132842297

Question 1: A company's break-even point is 4,000 units at a sales price of P50 per unit, variable cost of P30 per unit, and total fixed costs of P80,000. If the company sells 500 additional units, by how much will its profit increase?

a. P25,000

b. P15,000

c. P10,000

d. P12,000

Tiya Pusit's Fish Ball Stand sells fish balls for P25 each. The variable costs per fish ball are P10. Tiya Pusit's fixed cost are currently P 8,000 per month. Tiya Pusit is considering expanding her business to three fish ball stands which will fixed costs per month by P12,000.

Question 2: If Tiya Pusit does expand his business to three stands, how many additional fish balls will need to be sold per year in order to break even?

a. 800

b. 600

c. 9,600

d. 7,200