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How many units must tony sell to breakeven

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Question - Tony Company is contemplating of marketing a new product. Fixed costs will be P800,000 for production of 75,000 units or less and P1,200,000 if production exceeds 75,000 units. The variable cost ratio is 60% for the first 75,000.  Contribution margin percentage will increase to 50% for units in excess of 75,000. If the product is expected to sell for P25 per unit, how many units must Tony sell to breakeven?

Reference no: EM132917024

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