A process improvement causes an increase in total fixed costs of $12,000, but reduces variable cost by

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A process improvement causes an increase in total fixed costs of $12,000, but reduces variable cost by $1 per unit. Prior to the process improvement, total fixed costs were $90,000 and contribution margin per unit was $3. What is the new breakeven point in units after the process improvement was made? _____________ Units.

Contribution Margin
Contribution margin is an important element of cost volume profit analysis that managers carry out to assess the maximum number of units that are required to be at the breakeven point. Contribution margin is the profit before fixed cost and taxes...
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Managerial Accounting

ISBN: 9780073526706

12th Edition

Authors: Ray H. Garrison, Eric W. Noreen, Peter C. Brewer

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