Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Wilde Ltd produces a standard product which is sold at cost plus a 50% mark up. The business incurred fixed costs of 200,000 last year

Wilde Ltd produces a standard product which is sold at cost plus a 50% mark up. The business incurred fixed costs of

200,000

last year and total costs were

600,000.

The business sold 10,000 units during the year and was operating at full capacity. The business intends to expand its output by building a factory extension. This will increase annual fixed costs by

80,000

per year.

Calculate the increase in the break-even point (in units) as a result of the planned extension.

Question content area bottom

Part 1

enter your response here

_____ units (Round up your answer to the nearest whole number.)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Auditing

Authors: Timothy J. Ph.D. Robertson, Jack C.; Louwers

9th Edition

0072906952, 9780072906950

More Books

Students also viewed these Accounting questions