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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 900 Sales Price per Unit $120 Variable Cost per Unit $99 Contribution Margin per Unit $21 Fixed Costs $17,892 852 Break-Even (in units) Break-Even (in dollars) $102,240 Sales $108,000 Variable Costs $89,100 Contribution Margin $18,900 Fixed Costs $17,892 Net Income (loss) $1,008 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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