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Keegan Corporation produces and sells a single product. Data for that product are: Sales price per unit $510 Variable cost per unit $260 Fixed expenses
Keegan Corporation produces and sells a single product. Data for that product are:
Sales price per unit $510
Variable cost per unit $260
Fixed expenses for the month $1,100,000
Currently selling 6,000 units
Management is discussing increasing the price to $545 to cover an increase in fixed expenses of $82,000. Management believes they might lose 2% of sales per month.
What effect would these changes have on the company's breakeven point?
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