Homework Answers
a. Break-even point = Fixed costs / Contribution margin per unit
Break-even point = $315,000 / ($76 - $41)
Break-even point = 9,000 units
b. New break-even point = New fixed costs / New contribution margin per unit
New break-even point = $250,000 / ($76 - $44)
New break-even point = 7,813 units
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