Begin by assuming the product will sell for $30. How many units must be sold to break
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Question:
Begin by assuming the product will sell for $30. How many units must be sold to break even with a product price of $30?
Now recalculate the table under the assumption that the product will sell for $15. How many units must be sold to break even with a product price of $15?
What do you think you would set first: the sales target or the price? Because?
Number of Units | Assigned fixed costs | Variable Cost/Unit | Total production Cost | average unit cost | Unit price | Total sales revenue | Gross profit |
500 | $10,000 | $10 | |||||
1,000 | $10,000 | $10 | |||||
1,500 | $10,000 | $10 | |||||
2,000 | $10,000 | $10 | |||||
2,500 | $10,000 | $10 |
Related Book For
Managerial Accounting An Introduction to Concepts Methods and Uses
ISBN: 978-0324639766
10th Edition
Authors: Michael W. Maher, Clyde P. Stickney, Roman L. Weil
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