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5. Phones, Inc. has three (3) cellular phone products: Cell 1150, Cell 2210 and Cell 3250. The revenues and expenses attributed to each individual product
5. Phones, Inc. has three (3) cellular phone products: Cell 1150, Cell 2210 and Cell 3250. The revenues and expenses attributed to each individual product type of the company during the previous fiscal year are summarized as follows: Cell 1150 Cell 2210 Cell 3250 Total Total Sales in Units 15,000 5,000 12,000 32,000 Total Peso Sales (in Php) 300,000,000 150,000,000 72,000,000 522,000,000 Total Variable Cost (in Php) 180,000,000 90,000,000 42,000,000 312,000,000 Total Fixed Cost (in Php) 70,000,000 50,000,000 8,500,000 128,500,000 Compute the breakeven point in units for each product type assuming that Phones, Inc.'s sales mix will be maintained. Phones, Inc. plans to launch a promotional offer to the market, giving 5% off on the selling price of Cell 1150 and 10% discount on the selling price of both Cell 2210 and Cell 3250. Given the promotional plan of the company, how many units of each product type should be sold in order to realize a profit of Php 25,000,000
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