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Rosario Company, which is located in Buenos Aires, Argentina, manufactures a component used in farm...

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Accounting

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Rosario Company, which is located in Buenos Aires, Argentina, manufactures a component used in farm machinery. The firm's fixed costs are 3,400,000 p per year. The variable cost of each component is 1,800p, and the components are sold for 3,300p each. The company sold 5,300 components during the prior year. ( p denotes the peso, Argentina's national currency. Several countries use the peso as their monetary unit. On the day this exercise was written, Argentina's peso was worth US\$0.104. In the following requirements, ignore income taxes.) Required: 1. Compute the break-even point in units. Note: Round your answer to the nearest whole number. 2. What will the new break-even point be if fixed costs increase by 15 percent? Note: Round your answer to the nearest whole number. 3. What was the company's net income for the prior year? 4. The sales manager believes that a reduction in the sales price to 2,800 will result in orders for 1,000 more components each year. What will the break-even point be if the price is changed? Note: Round your answer to the nearest whole number. Should the price change discussed in requirement 4 be made

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