# Question

Refer to the information presented in M6-2. Suppose that Juniper raises its price by 20 percent, but costs do not change. What is its new break-even point?

Juniper Enterprises sells handmade clocks. Its variable cost per clock is $6, and each clock sells for $24. Calculate Juniper’s contribution margin per unit and contribution margin ratio. If the company’s fixed costs total $6,660, determine how many clocks Juniper must sell to break even.

Juniper Enterprises sells handmade clocks. Its variable cost per clock is $6, and each clock sells for $24. Calculate Juniper’s contribution margin per unit and contribution margin ratio. If the company’s fixed costs total $6,660, determine how many clocks Juniper must sell to break even.

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