The cross over point for two types of machine producing widgets is 625 units. Machine A has a fixed cost of P15,000 while Machine B has a fixed cost of P40,000. If the variable cost of Machine A is five times that of the variable cost of Machine B, what is variable cost of Machine A? O P100.00 O P10.00 P5.00 O P25.00 P50.00

The cross over point for two types of machine producing widgets is 625 units. Machine A has a fixed cost of P15,000 while Machine B has a fixed cost of P40,000. If the variable cost of Machine A is five times that of the variable cost of Machine B, what is variable cost of Machine A? O P100.00 O P10.00 P5.00 O P25.00 P50.00

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter14: Capital Structure Management In Practice

Section14.A: Breakeven Analysis

Problem 7P

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