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Forrester Company is considering buying new equipment that would increase monthly fixed costs from $240,000 to $627,000 and would decrease the current variable costs of
Forrester Company is considering buying new equipment that would increase monthly fixed costs from $240,000 to $627,000 and would decrease the current variable costs of $60 by $15 per unit. The selling price of $100 is not expected to change. Forrester's current break-even sales are $600,000 and current break-even units are 6,000. If Forrester purchases this new equipment, the revised break-even point in dollars would be: Multiple Choice O $436,364. O $600,000. O $330,000 O $763,636. O $1,140,000 Wang Co. manufactures and sells a single product that sells for $650 per unit: variable costs are $338 per unit. Annual fixed costs are $960,000. Current sales volume is $4,320,000. Management targets an annual pre-tax income of $1,245,000. Compute the dollar sales to earn the target pre-tax net income. Multiple Choice O $6,201,600 $4,593,750. O o $4.240.385. o $3,955,385 $3,670,385. O
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