5.

A parts manufacturer in Argentina has fixed costs of 2 million pesos, variable

costs of 1,000 p per unit, and a normal selling price of 1,500 p per unit.

a.

Compute breakeven in units. _____________

b.

Calculate the contribution margin. _________

c.

Calculate the contribution margin ratio. _________

d.

Calculate the new breakeven point in units if fixed costs are increased 5%.

__________

e.

Calculate the new breakeven point in pesos if the sales price is reduced to

1,400 p per unit and fixed costs remain at 2 million pesos.

______________

f.

How many units must be sold in the period to generate a profit of 1 million

p. if the sales price is 1,500 p. and fixed and variable costs remain as

originally shown in the data above2 million p and 1,000 p per unit?

_______________