A company has a production capacity of 500 units per month and its fixed costs are P250,000 a month The variable costs per unit are P1, 150 and each unit can be sold for P2,000 Economy measures are instituted to reduce the fixed costs by 10 per cent and the variable costs by 20 per cent Determine the new break-even point

• To break-even (new): x = 198 units per month
• To break-even (new): x = 218 units per month
• To break-even (new): x = 208 units per month Correct
• To break-even (new): x = 188 units per month