An engineer collected average cost and revenue data for Arensons FC1 handheld financial calculator. Fixed cost =
Question:
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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a Q FC7040 FC30 FC Q BE units 200000 6667 250000 ...View the full answer
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