Vernon Company produces a product that sells for $$30$ per unit and has a variable cost of $$12$ per unit. Vernon incurs annual fixed costs of $$117,000.$

Required

a$.$ Determine the sales volume in units and dollars required to break even.

Note: Do not round intermediate calculations.

b$.$ Calculate the break$-$even point assuming fixed costs increase to $$153,000.$

Note: Do not round intermediate calculations.

$\backslash$table$[[$a$.$ Sales volume in units,$6,500],[$a$.$ Sales in dollars,$195,000],[$b$.$ Break$-$even units,$],[$b$.$ Break$-$even sales,$]]$

References

Mc

Graw

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