Question
Wickes Corporation produces one product, which it sells for $120. Variable costs are $80 per unit, and fixed costs are $80,000. Consider each of the
Wickes Corporation produces one product, which it sells for $120. Variable costs are $80 per unit, and fixed costs are $80,000. Consider each of the questions below independently. a. What is the break-even point in dollars and in units? b. If sales commissions are increased by $4 per unit, how many more units must be sold to break-even? (Round up to nearest unit) c. If fixed costs increase to $100,000 and variable costs are $70 per unit, what will the break-even point in units? d. If fixed costs remain at $80,000 while variable costs drop to $60 per unit, what is the new break-even point in dollars?
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