A product has a contribution margin of $2 50 per unit and a selling price of $25 per unit Fixed costs are $20,000 Assuming new technology increases the unit contribution margin by 50 percent but increases total fixed costs by $13,750, what is the new breakeven point in units A 9,000 units B 13,500 ...

New technology contribution margin 250 150 ...

A product has a contribution margin of $2.50 per unit and a selling price of $25 per

Question:

A product has a of $2.50 per unit and a selling price of $25 per unit. Fixed costs are $20,000. Assuming new technology increases the unit by 50 percent but increases total fixed costs by $13,750, what is the new breakeven point in units?
A. 9,000 units
B. 13,500 units
C. 3,667 units
D. units
Contribution Margin
Contribution margin is an important element of cost volume profit analysis that managers carry out to assess the maximum number of units that are required to be at the breakeven point. Contribution margin is the profit before fixed cost and taxes...