A product at the jennings company enjoyed reasonable sales volumes, but its contributions to profits were disappointing. last year, 17,500 units were produced and sold. the selling price is $22 per unit, the variable cost is $18 per unit, and the fixed cost is $80,000.

a) what is the break-even quantity for this product? use graphic approach for your answer.

b) if, sales were not expected to increase, by how much would jennings have to reduce their variable cost to break even?

Answer rating: 100% (QA)

a Selling price per unit 2200 Variable cost 1800 Contribution per unit 40... View the full answer