Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Samy Inc. operated at its normal capacity during the current year, producing 69,000 units of its single product. Sales totalled 59,000 units at an average
Samy Inc. operated at its normal capacity during the current year, producing 69,000 units of its single product. Sales totalled 59,000 units at an average price of $30 per unit. Variable cost of goods sold amounted to $13 per unit, and sales commissions were paid out at $5 per unit sold. Fixed product costs, incurred uniformly throughout the year, amounted to $197,000 and fixed period costs, incurred uniformly, amounted to $27,000 per quarter. Required: 1. Compute Samy's break-even point in sales dollars for the current year. (Do not round intermediate calculations. Round your answer to the nearest whole number.) 2. If Samy's fixed product costs unexpectedly increase by 15%, what is the new unit selling price that would yield the same break-even sales as before the cost increase? (Do not round intermediate calculations and round your answer to 2 decimal places.)
Step 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