Marchete Company produces a single product. They have recently received the results of a market survey that indicates that they can increase the retail price of their product by 10% without losing customers or market share. All other costs will remain unchanged. Their most recent CVP analysis is presented below.

	Current
Units sold	1,000
Sales Price per Unit	$130
Variable Cost per Unit	$98
Contribution Margin per Unit	$32
Fixed Costs	$27,264
Break-Even (in units)	852
Break-Even (in dollars)	$110,760
----------------------------------	----------
Sales	$130,000
Variable Costs	$98,000
Contribution Margin	$32,000
Fixed Costs	$27,264
Net Income (loss)	$4,736

If they enact the 10% price increase, what will be their new break-even point in units and dollars? If required, round final answers to nearest whole number.

------------------------------	New Price
Break-even (in units)
Break-even (in dollars)	$

Answer rating: 100% (QA)

Step 1 Calculate the new sales price per unit after the 10 price increase New sales price per unit C... View the full answer