Mikaela Inc. sells three sizes of umbrellas: small, medium, and large. The company has annual...
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Accounting
Mikaela Inc. sells three sizes of umbrellas: small, medium, and large. The company has annual fixed costs of P19,520,000. For the past several years, 20% of Hugo's sales have been the small and large umbrellas with the remaining 60% being the medium size. Mikaela does not expect this to change in the upcoming year. The following information is also available for each of the umbrellas: Small Medium Large Sales price per unit P400 P700 P1.750 Variable costs per unit 150 200 450 Required . How many total umbrellas does the company need to produce and sell in order to break even? (3 pts.) B. How many medium umbrellas need to be sold in order to break even?(3 pts.) C. If Mikaela experiences a higher demand of large umbrellas than it anticipated, will the break-even point increase, decrease, or stay the same? Why? (4 pts.)

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