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Littlefield Partners produce a part sold to agricultural equipment suppliers. For the last year ( Year 1 ) , the price, costs, and volume of

Littlefield Partners produce a part sold to agricultural equipment suppliers. For the last year (Year 1), the price, costs, and volume of the
part were as follows:
Managers at Littlefield believe that next year (Year 2), conditions in the industry will result in lower prices, both for the part they sell and
the materlals they purchase. Their best estimates at this time are that the selling price will decline by 10 percent while the unit variable
cost will decline by 5 percent, taking into account the changes in both materlals and labor. They believe that fixed costs will remain the
same.
Required:
a. What was the break-even volume in number of units last year (Year 1)?
b. Assume that the managers estimates are correct for Year 2. How many units would have to be sold in Year 2 to earn the same
operating profits as earned In Year 1?
c. Assume that the managers' estimates on price and unit variable costs are correct for Year 2, but they are uncertain about fixed
costs. By how much would fixed costs have to change (In amount and as a percentage of current fixed costs) If the break-even level
was to remain the same in Year 2 as in Year 1?
Complete this question by entering your answers in the tabs below.
What was the break-even volume in number of units last year (Year 1)?
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