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Rosario Company, which is located in Buenos Aires, Argentina, manufactures a component used in farm machinery. The firm's fixed costs are 3 , 2 0
Rosario Company, which is located in Buenos Aires, Argentina, manufactures a component used in farm machinery. The firm's fixed costs are per year. The variable cost of each component is and the components are sold for each. The company sold components during the prior year. denotes the peso, Argentina's national currency. Several countries use the peso as their monetary unit. On the day this exercise was written, Argentina's peso was worth US $ In the following requirements, ignore income taxes.
Required:
Compute the breakeven point in units.
Note: Round your answer to the nearest whole number.
What will the new breakeven point be if fixed costs increase by percent?
Note: Round your answer to the nearest whole number.
What was the company's net income for the prior year?
The sales manager believes that a reduction in the sales price to will result in orders for more components each year. What will the breakeven point be if the price is changed?
Note: Round your answer to the nearest whole number.
Should the price change discussed in requirement be made?
table Breakeven point,components New breakeven point,components Net income,
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