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Question 1 2 pts Zeke Company sells a single product. The selling price per unit is $32 and unit variable cost is $24. Fixed
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Answer #1
Original value Increase New value
Selling price per unit $32 32 x 19% = 6.08 38.08
Variable cost per unit $24 24 x 14% = 3.36 27.36
Fixed costs $100,200 100,200 x 18% = 18,036 118,236

Calculation of new Break even point (units)

Contribution margin per unit = Selling price per unit – Variable cost per unit

= 38.08 - 27.36

= $10.72

Break even point (units) = Fixed cost/Contribution margin per unit

= 118,236/10.72

= 11,029

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