Question
Feltan Company operated at normal capacity during the current year, producing 64,000 units of its single product. Sales totalled 54,000 units at an average price
Feltan Company operated at normal capacity during the current year, producing 64,000 units of its single product. Sales totalled 54,000 units at an average price of $25 per unit. Variable manufacturing costs were $9 per unit, and variable marketing costs were $4 per unit sold. Fixed costs were incurred uniformly throughout the year and amounted to $174,000 for manufacturing and $78,000 for marketing. There was no year-end work-in-process inventory. Required: 1. What is Feltans break-even point in sales dollars for the current year? (Do not round intermediate calculations.) 2. If Feltans variable manufacturing costs unexpectedly increase by 10%, what is the new unit selling price that would yield the same contribution margin ratio as before the cost increase? (Do not round intermediate calculations and round your answer to 2 decimal places.) EXPLAIN HOW U GOT UR ANSWERS!!
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