Question
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.
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Part 1
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_____ units (Round up your answer to the nearest whole number.)
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