Break-Even Point Radison Enterprises sells a product for $68 per unit. The variable cost is $41...

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Break-Even Point Radison Enterprises sells a product for $68 per unit. The variable cost is $41 per unit, while fixed costs a

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Answer 1

Answer #1

a.Contribution margin=Sales-Variable cost

=68-41=$27 per unit

Breakeven=Fixed expenses/Contribution margin

=99144/27

=3672 units

b.New Contribution margin=75-41=$34 per unit

Hence new breakeven=99144/34

=2916 units

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Answer 2

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