Question
The following information was provided by Ring The Bells, Ltd. for the month of June: Current sales price: $125.00 per unit Current variable costs per
The following information was provided by Ring The Bells, Ltd. for the month of June:
Current sales price: $125.00 per unit
Current variable costs per unit: $72.75
Current monthly fixed costs: $297,350
Current sales volume: 8,000 units
A manager at the firm projects the following changes will occur for the upcoming month of July:
Sales price will increase by $0.25 per unit
Variable costs will increase by $1.15 per unit
Monthly fixed costs will increase by $2,080 per month
Sales volume will increase by 780 units
If all of these changes occur, by how many units would the firms break-even point change?
a. | Decrease by 2,312 units | |
b. | Increase by 141 units | |
c. | Increase by 2,312 units | |
d. | Decrease by 141 units |
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