Refer to the information presented in M6-2. Suppose that Lezoli raises its price by 20 percent, but
Question:
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.
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Related Book For
Managerial Accounting
ISBN: 9780078110771
1st Edition
Authors: Stacey WhitecottonRobert LibbyRobert Libby, Patricia LibbyRobert Libby, Fred Phillips
Question Posted: