A product line offered by Global Company sells for an average of $20 per unit with a weighted average variable cost per unit of $8.00. Fixed costs assigned to this product line are $4,800,000. Possible changes in government policies related to trade and tariffs may result in a 20% tariff being imposed on each unit sold. To determine the impact of a possible tariff on their break-even point, Global wants to calculate the number of additional units they will need to sell to break-even if a tariff is imposed. If Global must pay a tariff equal to 20% of the average revenue per unit, how many additional units will Global need to sell to achieve break-even?

Answer rating: 100% (QA)

To calculate the number of additional units Global Company needs to sell to breakeven i... View the full answer