Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Please help with the breakeven graph on #4. I have the rest of the questions solved. ? 3). New break even point in units= Revised
Please help with the breakeven graph on #4. I have the rest of the questions solved.
?
3). New break even point in units= Revised fixed cost / Revised Contribution per unit.
Revised fixed cost
= 200500 + 37500= $238000
Revised Contribution per unit = Revised Selling price per unit - Variable cost per unit
= 34 - (8 + 12)= 34 - 20
= $14
the new breakeven point in units is
= 238000 / 14= 17000 Units
LO4 Breakeven Analysis E7A. Meadowlands Design produces head covers for golf clubs. The company espects to generate a profit next year. It anticipates fixed manufacturing costs of $200,500 and fixed general and administrative expenses of $80,000 for the year. Variable manufactur- ing and selling costs per set of head covers will be $8 and $12, respectively. Each set will sell for $30. 1. Compute the breakeven point in sales units 2. Compute the breakeven point in sales dollars. 3. If the selling price is increased to $34 per unit and fixed general and administrative expenses are cut to $37,500, what will the new breakeven point be in units? 4. Prepare a graph to illustrate the breakeven point computed in 3Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started