The gas division of Power-U-Up plans to introduce a new gas delivery system based on the following accounting information. Fixed costs per period are $4 236; variable cost per unit is $168; selling price per unit is $211; and capacity per period is 450 units.

a) Compute the break-even point

(i) in units;

(ii) as a percent of capacity;

(iii) in dollars.

b) Determine the break-even point as a percent of capacity

(i) if fixed costs are reduced to $3 788;

(ii) if fixed costs increase to $5 577 and variable costs are reduced to 75% of the selling price;

(iii) if the selling price is reduced to $191.

Answer rating: 100% (QA)

a i Break even point Fixed costs Contribution margin where contribution margin Selling price per u... View the full answer