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page - 1 - Washburn Guitars: Using Break-Even Points to Make Pricing Decisions QUESTION 1: In Washburn's factory, what is the break-even point for the

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page - 1 - Washburn Guitars: Using Break-Even Points to Make Pricing Decisions QUESTION 1: In Washburn's factory, what is the break-even point for the new line of guitars if the retail price is (a) $349, (b) $389, and (c) $309? Also (d) if Washburn achieves the sales target of 2,000 units at the $349 retail price, what will its profit be? QUESTION 2: Assume that the merger with Parker leads to the cost reductions projected in the case. What will be the (a) new break-even point at a $349 retail price for this line of guitars and (b) new profit if it sells 2,000 units? r guitars and 4 O

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