Americas Company has a plant capacity of 100,000 units per year, but its bud get for this year indicates that only 60,000 units will be produced and sold. The entire budget for this year follows.

1. Given the budgeted selling price and cost data, how many units would Americas have to sell to break even?
2. Market research indicates that if Americas were to drop its selling price to $3.70 per unit, it could sell 100,000 units. Would you recommend the drop in price? What would the new operating income or lossbe?

  • CreatedMarch 26, 2014
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