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Currently, the unit selling price of a product is $110, the unit variable cost is $80, and the total fixed costs are $345,000. A proposal is being evaluated to increase the unit selling price to $120. a. Compute the current break-even sales (units). units b. Compute the anticipated break-even sales (units), assuming that the unit selling price is increased and all costs remain constant. units margin =110-80 = 30 Fixed cost =345000 Break-even = 345000/30 = 11500 units b) new break-even = 345000/40 = 8625 units
As well as the statement of financial position, profit and loss account and cash flow statement, a company's annual report and accounts contain other useful information.
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