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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?

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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

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