Juniper Enterprises sells handmade clocks. Its variable cost per clock is $8.50, and each clock sells...

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Juniper Enterprises sells handmade clocks. Its variable cost per clock is $8.50, and each clock sells...

Juniper Enterprises sells handmade clocks. Its variable cost per clock is $8.50, and each clock sells for $17.00. The company’s fixed costs total $10,328. Suppose that Juniper raises its price by 40 percent, but costs do not change.

What is its new break-even point?

business accounting

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Answer 1

Answer #1

Computation of New BreakEven Point
Revised Selling Price ( $17*1.40)	$23.80
Less: Variable Cost	$8.50
Contribution per Unit	$15.30

BEP= Fixed Cost/ Contribution Per Unit

=$10328/$15.30= 675 Unit

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Answer 2

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Juniper Enterprises sells handmade clocks. Its variable cost per clock is $8.50, and each clock sells...

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