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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
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 Sales Price per Unit 960 $140 Variable Cost per Unit $99 Contribution Margin per Unit $41 Fixed Costs $34,891 Break-Even (in units) 851 Break-Even (in dollars) $119,140 Sales $134,400 Variable Costs $95,040 Contribution Margin $39,360 Fixed Costs $34,891 $4,469 Net Income (loss) 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) $ 634 97,707 X
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