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Total Per unit Sales revenue (30,000 units) $750,000 Variable costs 450,000 15 Contribution margin 300,000 Fixed costs 150,000 Operating income $150,000 Now assume that this
Total Per unit Sales revenue (30,000 units) $750,000 Variable costs 450,000 15 Contribution margin 300,000 Fixed costs 150,000 Operating income $150,000 Now assume that this company's selling price per unit and variable cost per unit stay the same while total fixed costs increase by $100.000 per year. This company's breakeven point will Increase decrease remain the same
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