Break-Even Sales

Currently, the unit selling price of a product is $270, the unit variable cost is $220, and the total fixed costs are $480,000. A proposal is being evaluated to increase the unit selling price to $300.

a.Compute the current break-even sales (units).

fill in the blank 1

units

b.Compute the anticipated break-even sales (units), assuming that the unit selling price is increased to the proposed $300, and all costs remain constant.

fill in the blank 2

units