Homework Answers
| 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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