Digitel is a mobile devices company. Unit sale price if the mobile device is $84 and the unit variable cost is $24. The accounting break-even and the financial break-even points of Digitel are 240,000 units and 280,000 units respectively. If we hold everything else the same and only increase the annual fixed costs by $1,200,000, what would be the new accounting and financial break-even points?

Answer rating: 100% (QA)

To solve this problem we need to use the breakeven analysis formula Accounting Breakeven Point Fixed ... View the full answer