Gladstorm Enterprises sells a product for $49 per unit. The variable cost is $31 per unit, while fixed costs are $14,256...

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Gladstorm Enterprises sells a product for $49 per unit. The variable cost is $31 per unit, while fixed costs are $14,256...

Gladstorm Enterprises sells a product for $49 per unit. The variable cost is $31 per unit, while fixed costs are $14,256. Determine the following: Round your answers to the nearest whole number.

a. Break-even point in sales units		units
b. Break-even point in sales units if the selling price increased to $64 per unit		units

business accounting

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Answer 1

Answer #1

a.Contribution margin=Sales-Variable cost

=49-31=$18 per unit

Breakeven=Fixed cost/Contribution margin

=14256/18=792 units

b.Contribution margin=64-31

=$33 per unit

Hence breakeven=14256/33=432 units

Break-even point in sales units	792 units
Break-even point in sales units if the selling price increased to $64 per unit	432 units

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Answer 2

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Gladstorm Enterprises sells a product for $49 per unit. The variable cost is $31 per unit, while fixed costs are $14,256...

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Add Answer to: Gladstorm Enterprises sells a product for $49 per unit. The variable cost is $31 per unit, while fixed costs are $14,256...

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Gladstorm Enterprises sells a product for $49 per unit. The variable cost is $31 per unit, while fixed costs are $14,256...