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Use the following information to answer questions 36 -40 Sales price per unit $8.50 Direct labor per unit $1.90 Direct materials per unit $2.60 Variable

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Use the following information to answer questions 36 -40 Sales price per unit $8.50 Direct labor per unit $1.90 Direct materials per unit $2.60 Variable overhead per unit $1.40 Factory overhead that does not change with volume $327,600 General and administrative expenses $194,000 If a proposal will increase the fixed costs by 10% and lower the direct materials per unit by $.50 what would be the new breakeven point in dollars? 1) $1,354,711 2) $1,875,754 XIN 3 MacBook Air 30 000 F3 F4 FS II F6 F7 F8 69 $ A % 5 - 4 6 & 7 8 9 0

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