12. A ceramics manufacturer sold cups last year for P7.50 each. Variable costs of manufacturing were P2.25 per unit. The company needed to sell 20,000 cups to break even. Net income was P5,040. This year, the company expects the price per cup to be P9.00; variable manufacturing costs to increase 33.3%; and fixed costs to increase 10%. How many cups (rounded) does the company need to sell this year to breakeven? O 17,111 O 17,500 O 19,250 25,667

ENGR.ECONOMIC ANALYSIS
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Chapter1: Making Economics Decisions
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12. A ceramics manufacturer sold cups
last year for P7.50 each. Variable costs
of manufacturing were P2.25 per unit.
The company needed to sell 20,000
cups to break even. Net income was
P5,040. This year, the company
expects the price per cup to be P9.00;
variable manufacturing costs to
increase 33.3%; and fixed costs to
increase 10%. How many cups
(rounded) does the company need to
sell this year to breakeven? *
O 17,111
O 17,500
O 19,250
O 25,667
Transcribed Image Text:12. A ceramics manufacturer sold cups last year for P7.50 each. Variable costs of manufacturing were P2.25 per unit. The company needed to sell 20,000 cups to break even. Net income was P5,040. This year, the company expects the price per cup to be P9.00; variable manufacturing costs to increase 33.3%; and fixed costs to increase 10%. How many cups (rounded) does the company need to sell this year to breakeven? * O 17,111 O 17,500 O 19,250 O 25,667
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