Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The Laos Marketing Company is expecting an increase of fixed costs by P180,000 upon moving their place of business to the downtown area. Likewise,

 

The Laos Marketing Company is expecting an increase of fixed costs by P180,000 upon moving their place of business to the downtown area. Likewise, it is anticipating that the selling price per unit and the variable expenses will not change. At present, the sales volume necessary to breakeven is P4,680,000 but with the expected increase in fixed costs, the sales volume necessary to breakeven would go up to P5,400,000. Based on these projections, what was the total fixed costs after the increase of P180,000?

Step by Step Solution

There are 3 Steps involved in it

Step: 1

Based on the image the total fixed costs after the increase of P180000 would be P5400000 We can arrive at this answer by assuming the following Let F be the original fixed cost The company needs to se... blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Managerial Accounting Tools for Business Decision Making

Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso, Ibrahim M. Aly

3rd Canadian edition

978-1118727737, 1118727738, 978-1118033890

More Books

Students also viewed these Accounting questions