Homework Answers
a.
Selling price per unit = $119
Variable cost per unit = $68
Contribution margin per unit = Selling price per unit - Variable cost per unit
= 119-68
= $51
Fixed cost= $436,968
Break even point ( in units) = Fixed cost/ Contribution margin per unit
= 436,968/51
= 8,568 units
| Break even point in sales units | 8,568 units |
b.
Selling price per unit = $124
Variable cost per unit = $68
Contribution margin per unit = Selling price per unit - Variable cost per unit
= 124-68
= $56
Fixed cost= $436,968
Break even point ( in units) = Fixed cost/ Contribution margin per unit
= 436,968/56
= 7,803 units
| Break even point if the selling price were increase to $124 per unit | 7,803 units |
Kindly comment if you need further assistance. Thanks‼!
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