Refer to the information presented in M6-2. Suppose that Lezoli raises its price by 20 percent, but

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Refer to the information presented in M6-2. Suppose that Lezoli raises its price by 20 percent, but costs do not change. What is its new break-even point?


Data from M6-2

Lezoli Enterprises sells handmade clocks. Its variable cost per clock is \($6\), and each clock sells for \($15\). Calculate Lezoli’s contribution margin per unit and contribution margin ratio. If the company’s fixed costs total \($6,660\), determine how many clocks Lezoli must sell to break even.

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Managerial Accounting

ISBN: 9780078110771

1st Edition

Authors: Stacey WhitecottonRobert LibbyRobert Libby, Patricia LibbyRobert Libby, Fred Phillips

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