How many lanterns would have to be sold at new selling price

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Reference no: EM133906337

Problem

Quiz 2B for Prelims (Auditing Specialized Industries) (Break-even and Target Profit Analysis) Rojo Products sells camping equipment. One of the company's products, a camp lantern, sells for P900 per unit. Variable expenses are P630 per lantern and fixed expenses associated with the lantern total P1,350,000 per month. Required: (show supporting computation) 1. Compute the company's break-even point in number of lanterns and in total sales pesos 2. At present, the company is selling 8,000 lanterns per month. The sales manager is convinced that a 10% reduction in the selling price will result in a 25% increase in the number of lanterns sold each month. Get the instant assignment help. How many lanterns would have to be sold at the new selling price to yield a minimum net operating income of P720,000 per month?

Reference no: EM133906337

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