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Marchete Company produces a single product. They have recently received the results of a market survey that indicates that they can increase the retail price
Marchete Company produces a single product. They have recently received the results of a market survey that indicates that they can increase the retail price of their product by 10% without losing customers or market share. All other costs will remain unchanged. Their most recent CVP analysis is presented below. Current Units sold 920 Sales Price per Unit $130 Variable Cost per Unit $98 Contribution Margin per Unit $32 Fixed Costs $27,232 Break-Even (in units) 851 Break-Even (in dollars) $110,630 Sales $119,600 Variable Costs $90,160 Contribution Margin $29,440 Fixed Costs $27,232 Net Income (loss) $2,208 If they enact the 10% price increase, what will be their new break-even point in units and dollars? If required, round final answers to nearest whole number. New Price Break-even (in units) Break-even in dollars) Salvadores Manufacturing builds and sells snowboards, skis and poles. The sales price and variable cost for each follows: Selling Price Variable Cost Product per Unit per Unit Snowboards $320 $180 Skis $420 $220 Poles $40 $20 Their sales mix is reflected in the ratio 7:3:2. If annual fixed costs shared by the three products are $162,000, how many units of each product will need to be sold in order for Salvadores to break even? Break-even per Number of Units Product Ratio (mix) composite unit per product Snowboards 7 Skis 3 Poles N 2 Salvador Manufacturing builds and sells snowboards, skis and poles. The sales price and variable cost for each follows: Selling Price Variable Cost Product per Unit per Unit Snowboards $320 $190 Skis $420 $240 Poles $40 $10 Their sales mix is reflected in the ratio 7:3:1. If annual fixed costs shared by the three products are $162,800. Determine the break-even point in sales dollars. Break-even point
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