Question
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 1,000
Sales
Price per Unit
$130 Variable
Cost per Unit $99
Contribution Margin per Unit $31
Fixed Costs $26,195
Break-Even (in units) 845
Break-Even (in dollars) $109,850
Sales $130,000 Variable Costs $99,000
Contribution Margin $31,000
Fixed Costs $26,195
Net Income (loss) $4,805
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)\
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