Homework Answers
Fixed cost = $1,441,000
Increase in fixed cost = $49,500
Total fixed cost after increasing = 1,441,000 + 49,500
= $1,490,500
Selling price per unit = $205
Variable cost per unit = $125
Contribution margin per unit = Selling price per unit - Variable cost per unit
= 205 - 125
= $80
Break even sales (in units) = Fixed cost/Contribution margin per unit
= 1,490,500/80
= 18,631 units
Correct option is (c)
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