Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

MacroSoft, Inc., produces and sells a single product, the XCube gaming system. The firms Contribution Margin Income Statement for the month of September 2021 follows.

MacroSoft, Inc., produces and sells a single product, the XCube gaming system. The firms Contribution Margin Income Statement for the month of September 2021 follows. Assume the firms sales volume for the current month ended 9/30/2021 was 12,000 units.

MacroSoft, Inc.

Contribution Margin Income Statement

For the month ended 9/30/2021

Sales

$6,600,000

Variable costs

$2,580,000

Contribution Margin

$4,020,000

Fixed Costs

$2,894,500

Income

$1,125,500

Suppose that the production manager for Macrosoft predicts the following changes for October 2021:

  • Price per unit decreases $20 per unit
  • Sales volume will increase by 2,500 units
  • Variable costs per unit decrease by $16 per unit
  • Total fixed costs increase by $120,000

What will be the revised break-even point in units for October assuming all of these changes occur? Round your answer up to the nearest whole unit.

Group of answer choices

8,723

8,893

8,641

8,999

9,108

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_2

Step: 3

blur-text-image_3

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

Payroll Accounting 20

Authors: Bernard J. Bieg, Judith A. Toland

26th Edition

1337268798, 9781337268790

More Books

Students also viewed these Accounting questions