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 900 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 $117,000 Variable Costs $88,200 Contribution Margin $28,800 Fixed Costs $27,232 Net Income (loss) $1,568 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) fill in the blank 1 Break-even (in dollars) $fill in the blank 2
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