Homework Answers
New Fixed cost = 212500*1.1 = 233750
New selling price = 300*1.4 = 420
variable cost per unit = 300*30% = 90
Break even = Fixed cost/Contribution margin per unit = 233750/(420-90) = 709 Units
So answer is c) 709 Units
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#1
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#1
Martin Compary currently sells its products for $240 per unit Management is contemplating a 40 % increase in the selling price for the next year. Variable costs are curently 10% of sales revenue and are not expected to change naxt year Fixed expenses are $130,000 per year f foed costs inrease 20% next year, and the new solling price per unit goes into effect, how many units will need to be sold to breakeven? OA 500 units OB. 433...
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how
do I solve this
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