If fixed costs are $320,000, the unit selling price is $72, and the unit variable costs...
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If fixed costs are $320,000, the unit selling price is $72, and the unit variable costs are $50, what are the old and new break-even sales in units (rounded to a whole number) if the unit selling price increases by $4?
a.14,545 units and 4,444 units
b.4,444 units and 14,545 units
c.6,400 units and 11,808 units
d.14,545 units and 12,308 units
Homework Answers
Answer: Option ( d ) 14,545 units and 12,308 units
Explanation:
Old : Contribution margin per unit = 72 - 50 = 22
When sales rice increased by $4
New : Contribution margin per unit = $76 - 50 = 26
Add Answer to:
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