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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. 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.
    1. Compute breakeven in units. _____________
    2. Calculate the contribution margin. _________
    3. Calculate the contribution margin ratio. _________
    4. Calculate the new breakeven point in units if fixed costs are increased 5%.
    1. 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. _____________
    2. 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?

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