Question

Currently, the unit selling price of a product is $ 125, the unit variable cost is $ 105, and the total fixed costs are $ 460,000. A proposal is being evaluated to increase the unit selling price to $ 130.
a. Compute the current break-even sales (units).
b. Compute the anticipated break-even sales (units), assuming that the unit selling price is increased and all costs remain constant.



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  • CreatedJune 27, 2014
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