me (digital n one yean g expenses b he objective of t6 Jocal an ual donation of the donation aflec ce level? even. Exercise 7-25 Rosario Company, which is located in Buenos Aires, Argentina. farm machinery. The firm's fixed costs are 4.000.000 p ner vear. The variable cost of ech component is 2,000 p, and the components are sold for 3,000 p each. The company sold 5,000 components during sed in Manufacturing; Using CVP used to predicts ales volume? (LO 7-1,7-4) o denotes the peso, Argentina's national currency. Several countries use the peso as their the prior year monetary unit. On the day this exercise was written, Argentina's peso was worth .104 U.S. dollar. In the s of cost-volune following requirements, ignore income taxes.) prefer a contribu- traditional incom Answer requirements (1) through (4) independently. Required: 1. Compute the break-even point in units 2. What will the new break-even point be if fixed costs increase by 10 percent? anufacturing con ntribution marpi 3. What was the company's net income for the prior year? 4. The sales manager believes that a reduction in the sales price to 2,500 p will result in orders for using a complee Company are assem 1,200 more components each year. What will the break-even point be if the price is changed? 5. Should the price change discussed in requirement (4) be made? cturod Fxerrise 7-26 cost her operating le company will in profit: c compa nses, es