(L. OBJ. 4) Impact on breakeven point if sale price, variable costs, and fixed costs change [15 min]
Country Road Driving School charges $230 per student to prepare and administer written and driving tests. Variable costs of $70 per student include trainers' wages, study materials, and gasoline. Annual fixed costs of $112,000 include the training facility and fleet of cars.
Requirements
1. For each of the following independent situations, calculate the contribution margin per unit and the breakeven point in units:
a. Breakeven point with no change in information
b. Decrease sales price to $200 per student
c. Decrease variable costs to $50 per student
d. Decrease fixed costs to $102,000
2. Compare the impact of changes in the sales price, variable costs, and fixed costs on the contribution margin per unit and the breakeven point in units.
We need at least 10 more requests to produce the solution.
0 / 10 have requested this problem solution
The more requests, the faster the answer.