Hilton Enterprises sells a product for $42 per unit. The variable cost is $29 per unit,...
Hilton Enterprises sells a product for $42 per unit. The variable cost is $29 per unit, while fixed costs are $27,040.
Determine (a) the break-even point in sales units and (b) the break-even point if the selling price were increased to $49 per unit.
| a. Break-even point in sales units | units |
| b. Break-even point if the selling price were increased to $49 per unit | units |
Homework Answers
a.
Breakeven point:
= $27,040 / ($42 - $29)
= 2,080 units
b.
Breakeven point:
= $27,040 / ($49 - $29)
= 1,352 units
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