Question: A product has a contribution margin of $2.50 per unit and a selling price of $25 per unit. Fixed costs are $20,000. Assuming new technology

A product has a contribution margin of $2.50 per unit and a selling price of $25 per unit. Fixed costs are $20,000. Assuming new technology increases the unit contribution margin by 50 percent but increases total fixed costs by $13,750, what is the new breakeven point in units?
A. 9,000 units
B. 13,500 units
C. 3,667 units
D. units

Step by Step Solution

★★★★★

3.35 Rating (161 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock

New technology contribution margin 250 150 ... View full answer

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Document Format (1 attachment)

1019-B-C-A-C-P-A(4203).docx

120 KBs Word File

Students Have Also Explored These Related Cost Accounting Questions!

Multiple Choice Questions 1. Ginger Company's product has a contribution margin per unit of $11.25 and a contribution margin ratio of 22.5%. What is the selling price of the product? A. $5. B. $20....

Product S has a contribution margin of $150 per unit and requires three hours of machine time. Product T requires four hours of machine time and provides $200 of contribution margin per unit....

Multiple Choice Questions 1. If a company has a $25,000 reduction in sales and an increase of $7,000 in fixed costs with a contribution margin ratio of 34 percent, by how much will net income change?...

Please explain answer A product has a contribution margin of $9 per unit and a selling price of $20 per unit Fixed costs are $27,000. Assuming new technology increases the unit contribution margin by...

A product has a contribution margin of $8 per unit and a selling price of $50 per unit. Fixed costs are $24,000. Assuming new technology increases the unit contribution margin by 60 percent but...

A product has a contribution margin of $9 per unit and a selling price of $35 per unit Fixed costs are $45,000. Assuming new technology increases the unit contribution margin by 60 percent but...

A product has a contribution margin of $9 per unit and a selling price of $55 per unit. Fixed costs are $27,000. Assuming new technology increases the unit contribution margin by 50 percent but...

A product has a contribution margin of $5 per unit and a selling price of $45 per unit. Fixed costs are $25,000. Assuming new technology increases the unit contribution margin by 70 percent but...

A product has a contribution margin of $2.50 per unit and a selling price of $25 per unit. Fixed costs are $20,000. Assuming new technology increases the unit contribution margin by 50 percent but...

A product has a contribution margin of $7 per unit and a selling price of $20 per unit. Fixed costs are $35,000. Assuming new technology increases the unit contribution margin by 50 percent but...

QUESTION 2 . Describe the steps involved in administration of mixtures (14 MARKS) . Mention six ways in which drug containers could be catered for (6 MARKS)

The comparative income statements of Martin Corporation at December 31, 2010, showed the following summarized pretax data: Included in the 2010 data is a $3,000 expense that was deductible only in...

Problem 9 - 6 Portfolio Weights ( LG 9 - 7 ) An investor owns $ 8 , 5 0 0 of Adobe Systems stock, $ 9 , 5 0 0 of Dow Chemical, and $ 9 , 5 0 0 of Office Depot. What are the portfolio weights of each...

Perform a cluster analysis on the chemical company data in Table 9.1, using the K-means method for K = 2;3; 4.

Equation 11.14 can be expressed in "coordinate-free" form by writing P0 cos = P0 r. Do so, and likewise for Eqs. 11.17, 11.18. 11.19, and 11.21.

Find the radiation resistance of the wire joining the two ends of the dipole. (This is the resistance that would give the same average power loss--to heat--as the oscillating dipole in fact puts out...

A rotating electric dipole can be thought of as the superposition of two oscillating dipoles, one along the x axis, and the other along the y axis (Fig. 11.7), with the latter out of phase by 90o: p...

File Processing Complete the class code below and write a static method named reverseLines that accepts a Scanner containing an input file as a parameter and that echoes the input file to System.out...

The treasurer of a large corporation wants to invest $33 million in excess short-term cash in a particular money market investment. The prospectus quotes the instrument at a true yield of 4.21...

Setrakian Industries needs to raise $67.2 million to fund a new project. The company will sell bonds that have a coupon rate of 5.74 percent paid semiannually and that mature in 15 years. The bonds...