Maria Kabaliki is planning to sell a vegetable slicer-dicer for 15 per unit at a country fair.

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Maria Kabaliki is planning to sell a vegetable slicer-dicer for €15 per unit at a country fair. She purchases units from a local distributor for €6 each. She can return any unsold units for a full refund. Fixed costs for booth rental, set-up and cleaning are €450.
Required
1. Calculate the breakeven point in units sold.
2. Suppose the unit purchase cost is €5 instead of €6, but the selling price is unchanged. Calculate the new breakeven point in units sold.
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Related Book For  book-img-for-question

Management and Cost Accounting

ISBN: 978-1405888202

4th edition

Authors: Alnoor Bhimani, Charles T. Horngren, Srikant M. Datar, George Foster

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