Question: At present, the unit selling price is $70, the variable cost, $45, and the total fixed costs, $240,000. A proposal is being considered to increase
At present, the unit selling price is $70, the variable cost, $45, and the total fixed costs, $240,000. A proposal is being considered to increase the selling price to $80. Also, next year fixed costs are expected to increase to $250,000 as a result of an increase in property taxes. (a) Compute the current break-even sales (units). (b) Compute the anticipated break-even sales (units), assuming that the unit selling price is increased and all costs remain constant. (c)_ Compute the break-even units assuming an $80 sales price and fixed costs of $250,000
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