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What would be the total fixed costs after the increase

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Reference no: EM132793558

Question - The Rizal Marketing Company is expecting an increase of fixed costs by $78,750 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 $750,000 but with the expected increase in fixed costs, the sales volume necessary to breakeven would go up to $975,000. Based on these projections, what would be the total fixed costs after the increase of $78,750?

a. $300,000

b. $262,500

c. $183,750

d. $341,250

Reference no: EM132793558

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