Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Honest Company makes and sells a single product. The product s selling price is $ 1 0 0 per unit. Its unit variable expense is

Honest Company makes and sells a single product. The products selling price is $100 per unit. Its unit variable expense is $75. The total fixed expenses are $50,000. Currently, the company is selling 3,000 units of the product and making a $25,000 profit.
Assume that total fixed costs have increased TO $60,000. However, the company wants to keep the same BEP in units. For that purpose, the selling price has to be changed.
The new price per unit should be:

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Cost Management Accounting And Control

Authors: Don R. Hansen, Maryanne M. Mowen

5th Edition

0324233108, 978-0324233100

More Books

Students also viewed these Accounting questions