Question
Break-Even Sales. Currently, the unit selling price of a product is $750, the unit variable cost is $600, and the total fixed costs are
Break-Even Sales. Currently, the unit selling price of a product is $750, the unit variable cost is $600, and the total fixed costs are $2,550,000. A proposal is being evaluated to increase the unit selling price to $800. a. Compute the current break-even sales (units). 9,000 X units b. Compute the anticipated break-even sales (units), assuming that the unit selling price is increased to the proposed $800, and all costs remain constant. 60,000 X units Feedback Check My Work a. Fixed costs divided by the unit contribution margin equals break-even point in units. b. Repeat the calculations in (a) using anticipated amounts.
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