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What would the new breakeven point in pesos have been

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Q1. Seal Yard Ornaments sells lawn ornaments for P15 each. Seal's contribution margin ratio is 40%. Fixed costs are P32,000. Should fixed costs increase 30%, how many additional units will Seal have to produce and sell in order to generate the same net profit as under the current conditions?

a. 1,600.

b. 5,333.

c. 1,067.

d. 6,933.

Q2. Levi's Company has revenues of P500,000, variable costs of P300,000, and pretax profit of P150,000. Had the company increased the sales price per unit by 10%, reduced fixed costs by 20%, and left variable cost per unit unchanged, what would the new breakeven point in pesos have been?

a. P80,000

b. P100,000

c. P88,000

d. P125,000

Reference no: EM133066923

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