Zulu sells its waterproof phone case for $90 per unit. Fixed costs total $200,000, and variable costs
Question:
Zulu sells its waterproof phone case for $90 per unit. Fixed costs total $200,000, and variable costs are $40 per unit.
(a) Compute its break-even in units.
(b) Will the break-even point in units increase or decrease in response to each of the following independent changes?
Transcribed Image Text:
Change Break-Even in Units will: Change Break-Even in Units will: 1. Fixed costs increase to $225,000 ..... 4. Variable costs increase to $58 per unit .... 5. Fixed costs decrease to $150,000... 6. Selling price per unit increases to $120 ... 2. Variable costs decrease to $26 per unit ... 3. Selling price per unit decreases to $80.....
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a b BreakevenFixed ...View the full answer
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