Question: Company currently sells widgets for $160 per unit. The variable cost is $60 per unit and total fixed costs equal $240,000 per year. Sales are

Company currently sells widgets for $160 per unit. The variable cost is $60 per unit and total fixed costs equal $240,000 per year. Sales are currently 40,000 units annually. Required: a. Calculate the contribution margin per unit. b. Calculate break-even in units. c. Calculate break-even in sales dollars d. Calculate the current operating income assuming there were no income taxes. e. The company is considering a 10% drop in selling price that it believes will raise units sold by 15%. Assuming all costs stay the same, what is the impact on income if this change is made
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