Marchete Company produces a single product. They have recently received the results of a market survey that
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Marchete Company produces a single product. They have recently received the results of a market survey that indicates that they can increase the retail price of their product by 8% without losing customers or market share. All other costs will remain unchanged. Their most recent CVP analysis is shown. If they enact the 8% price increase, what will be their new break-even point in units and dollars?
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Units sold Sales price per unit Variable cost per unit Contribution margin per unit Fixed costs Break-even (in units) Break-even (in dollars) Sales Variable costs Contribution margin Fixed costs Net income (loss) Current 950 125 98 27 $ LA LA LA LA $ $ $ 23,000 852 $106,500 $118,750 $ 93,100 $ 25,650 $ 23,000 $ 2,650
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Principles Of Accounting Volume 2 Managerial Accounting
ISBN: 9780357364802
1st Edition
Authors: OpenStax
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