Impact change of s, Vor Fixed cost to breake even point in units Example: The following information pertains of the budget of Quality products, Inc., for the next month: Sales 1000 units for $5000 V.C 3000 F.C $10000 1. Calculate the break-even point in units? 2- Calculate the break-even point in units for each of the following independents cases: (a) 10 percent increase in selling price (b) 5 percent increase in fixed cost (c) 8 percent decrease in variable cost (d) 6 percent increase variable cost (e) 9 percent increase in fixed cost and 5 percent decrease in a variable cost 1- break-even point in units = fixed costs = $10000 / $5 - $3 = 5000 UNITS 5-V 2. (A) = $10000 / $5+ (%10x5) - $3 = $10000 / $5,5-3 = 4000 UNITS (B) = 10000 + ((10000 X %5) = 10500 / $5 - $3 = 5250 UNITS (C)= 10000/ $5 - (3-3X%8) = 10000/5-2,76 = 4464 UNITS (D) = 10000 / 5-13 + 3X%6) - 10000/ 5 -3,18 = 5494,5 UNITS (D) = 10000 + (10000 XX9)/5 - (3-3X45) = 10900 / 5-2,85 = 5069.7 UNITS