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Kylie's Cookies is considering the purchase of a larger oven that will cost $2,100 and will increase her fixed costs by $60. What would happen

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Kylie's Cookies is considering the purchase of a larger oven that will cost $2,100 and will increase her fixed costs by $60. What would happen if she purchased the new oven to realize the variable cost savings of $0.11 per cookie, and what would happen if she raised her price by just $0.17? She feels confident that such a small price increase will decrease the current sales level of 750 units by only 20 units and may help her offset the increase in fixed costs. Given the following current prices how would the break-even in units and dollars change if she doesn't increase the selling price and if she does increase the selling price? Complete the monthly contribution margin income statement for each of these cases. Round to the nearest whole unless otherwise specified. Use commas to denote thousands. Selling price, variable cost, and fixed cost change analysis With Current Price With decreased VC creased FC With increased SP, decreased VC, and increased FC Sales price per unit (round to the nearest cent) $ $1.55 $ $ Variable cost per unit (round to the nearest cent) $0.40 $ Contribution margin per unit (round to the nearest cent) $1.15 Contribution margin per unit (round to the nearest cent) $ $ $1.15 Fixed costs $ $ $405 Break-even in units 352 I I $ Break-even in dollars For Blank 10 $546 Monthly Contribution Margin Income Statement With Current Price With Decreased VC and Increased FC With Increased SP, Decreased VC, and Increased FC Unit sales, expected $ $ Sales With Current Price With Decreased VC and Increased FC With Increased SP, Decreased VC, and Increased FC Unit sales, expected Sales $ $ A $ I Varialbe costs $ $ A Contribution magrin $ $ $ Fixed costs $ $ $ Net Income $ Kylie should purchase the oven. True or False Kylie should purchase the oven and increase her selling price. True or False

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