Cost structure-what is the breakeven point in units

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White machine shop fabricates polished steel casings. They currently sell 20,000 casings at a selling price of $45. They have the following cost structure: Variable costs per unit $30 Fixed costs $150,000 Required (each requirement is independent): a. What is the breakeven point in units? Break-even point in units: b. Suppose that if they decrease their price to $38, they could increase sales to 30,000 units. What would the new profit be if they decrease their price to $38? Profit if price is $38: c. What is the minimum price that White would be willing to charge in order to achieve an increase in sales to 30,000 units (round to the nearest cent)? Minimum price for increase to 30,000 units: d. Suppose that White can purchase a machine that would increase fixed costs to $300,000 and decrease unit variable costs to $20 per unit. At what level of production and sales would White be indifferent between the old machine and the new machine? Level of production and sales (in units):

Reference no: EM131023188

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