Question: An engineer collected average cost and revenue data for Arensons FC1 handheld financial calculator. Fixed cost = $300,000 per year Cost per unit = $40

An engineer collected average cost and revenue data for Arenson’s FC1 handheld financial calculator.

Fixed cost = $300,000 per year

Cost per unit = $40

Revenue per unit = $70

(a) What is the range in breakeven quantity if there is possible variation in the fixed cost from $200,000 to $400,000 per year? (Use $50,000 increments.)

(b) What is the incremental change in the breakeven quantity for each $50,000 change in fixed cost?

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