Break-Even Sales Currently, the unit selling price of a product is $370, the unit variable cost...
Break-Even Sales
Currently, the unit selling price of a product is $370, the unit variable cost is $300, and the total fixed costs are $1,078,000. A proposal is being evaluated to increase the unit selling price to $410.
a. Compute the current break-even sales
(units).
units
b. Compute the anticipated break-even sales
(units), assuming that the unit selling price is increased and all
costs remain constant.
units
Homework Answers
Requirement a
current break-even sales (units).= 15,400 Units
.Working
| A | Sales price per unit | $ 370.00 |
| B | Variable cost per unit | $ 300.00 |
| C=A-B | Contribution margin per unit | $ 70.00 |
| D | Fixed cost | $ 1,078,000.00 |
| E=D/C | Break Even point in Unit Sales | 15,400.00 |
.
Requirement 2
anticipated break-even sales (units) = 9800 Units
.Working
| A | Sales price per unit | $ 410.00 |
| B | Variable cost per unit | $ 300.00 |
| C=A-B | Contribution margin per unit | $ 110.00 |
| D | Fixed cost | $ 1,078,000.00 |
| E=D/C | Break Even point in Unit Sales | 9,800.00 |
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Break-Even Sales
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