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What effect would peri plan have on the profits

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Question - Peri has proposed a plan to get the partnership "out of the red" and improve its profitability. She feels that the quality of the product could be substantially improved by spending P0.25 more per unit on better raw materials. The selling price per unit could be increased to only P5.25 because of competitive pressures. Peri estimates that sales volume will increase by 25%. What effect would Peri's plan have on the profits and the break-even point in pesos of the partnership?

Reference no: EM133103897

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