## Question

# Pierce Phones is considering the introduction of a new model of headphone whose selling price is $18 per unit and whose variable expense is

## Pierce Phones is considering the introduction of a new model of headphone whose selling price is $18 per unit and whose variable expense is $15 per unit. The company's monthly fixed expense is $4,200. Required: 1. Calculate the company's break-even point in unit sales. 2. Calculate the company's break-even point in dollar sales. (Do not round intermediate calculations.) 3. If the company's fixed expenses increase by $600, what would become the new break-even point in unit sales? In dollar sales? (Do not round intermediate calculations.) 1. Break-even point in unit sales baskets 2. Break-even point in dollar sales 3. Break-even point in unit sales baskets Break-even point in dollar sales

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### Fundamentals of Cost Accounting

**Authors:** William Lanen, Shannon Anderson, Michael Maher

5th edition

978-1259728877, 1259728870, 978-1259565403

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