Question: A product sells for $30 per unit and has variable costs of $15.50 per unit. The fixed costs are $1,015,000. If the variable costs per

A product sells for $30 per unit and has variable costs of $15.50 per unit. The fixed costs are $1,015,000. If the variable costs per unit were to decrease to $14.60 per unit, fixed costs increase to $1,078,000, and the selling price does not change, break-even point in units would:

a) Increase by 2100.

b) Equal 6,000.

c) Not change.

d) Increase by 23,744.

e) Decrease by 23,744.

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

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

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!

Accounting 48 1. A product sells for $30 per unit and has variable costs of $18 per unit The fixed costs are $720,000. If the variable costs per unit were to decrease to $15 per unit and fixed costs...

Help Save & Exits A product sells for $30 per unit and has variable costs of $17.25 per unit. The fixed costs are $981750. If the variable costs per unit were to decrease to $15.45 per unit, fixed...

QUESTION 4 Watson Company has monthly fixed costs of $83,000 and a 40% contribution margin ratio. If the company has set a target monthly income of $15,000, what dollar amount of sales must be made...

A product sells for $30 per unit and has variable costs of $16.50 per unit. The foxed costs are $891000. If the variable costs per unit were to decrease to $15 30 per unit fixed costs increase to...

BITCO has fixed costs of $100,000 and a 25% contribution margin ratio. What dollar sales are necessary to achieve an after- tax net income of $120,000 if the tax rate is 20%? O $800,000 O $900.000 O...

The following information is available for a company's utility cost for operating its machines over the last four months. Month January February March April Machine hours 1,030 1,930 2,660 730...

A product sells for $30 per unit and has variable costs of $16.50 per unit. The fixed costs are $999,000. If the variable costs per unit were to decrease to $13.80 per unit and fixed costs increase...

A product sells for $30 per unit and has variable costs of $18.00 per unit. The fixed costs are $960,000. If the variable costs per unit were to decrease to $16,50 per unit, fixed costs increase to...

A product sells for $30 per unit and has variable costs of $18 per unit. The fixed costs are $720,000. If the variable costs per unit were to decrease to $15 per unit and fixed costs increase to...

A product sells for $30 per unit and has variable costs of $16.75 per unit. The fixed costs are $861,250. If the variable costs per unit were to decrease to $15.25 per unit, fixed costs increase to...

The saving ratio was remarkably stable between 1895 and 1980. When we examine cross-section data, however, we find that the saving ratio tends to rise as income rises. How can these two observations...

4. Solve this Bernoulli equation. Assume x > 0. (20 points) 3 2x

A comparmy currently has 2 0 0 , 0 0 0 shares hsued and 1 9 0 , 0 0 0 shares outstanding. If the company purchases 2 0 , 0 0 0 shares of treasury stock, what amount of shares will be outstanding? 2 1...

10-18 Do you think Zagats decision to use a pay wall for its Web site was a mistake? Why or why not? Founded by Tim and Nina Zagat, the Zagat Survey has collected and published ratings of restaurants...

Explain the origins of human resources (HR) and their development over the last 100 years.

10-17 Why was Zagats content well suited for the Web and for the mobile digital platform? Founded by Tim and Nina Zagat, the Zagat Survey has collected and published ratings of restaurants by diners...