Question
1.) X Company sells its product for $100 per unit. It currently has annual fixed costs of $80,000. The variable costs are $60 per unit.
1.) X Company sells its product for $100 per unit. It currently has annual fixed costs of $80,000. The variable costs are $60 per unit. If the company's variable cost decreases to $50 per unit, give the increase (decrease) in the company's breakeven point (in units). Do not enter $ signs or commas. Round your answer to the nearest unit. If your answer is a decrease put a minus sign in front of your numbers. For example, enter an increase of 150 as 150 and a decrease of 150 as -150:
2.) X Company sells its product for $100 per unit. It currently has annual fixed costs of $80,000. The variable costs are $60 per unit. Suppose the company can buy a new machine that will decrease its variable cost to $50 per unit but will increase its annual fixed cost by $15,000. Give the increase (decrease) in the company's breakeven point (in units) if the machine is purchased. Do not enter $ signs or commas. Round your answer to the nearest unit. If your answer is a decrease put a minus sign in front of your numbers. For example, enter an increase of 150 as 150 and a decrease of 150 as -150:
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