Fixed cost decrease and sales volume decrease

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Reference no: EM131225076

1) At the break even point of 400 units, variable cost were $400 and fixed costs were $200. how much will the 401st unit sold contribute to operating profit before income taxes?

2) Break even would not change if : a) sales price increases, b) fixed cost decrease, c) sales volume decrease, d) variable cost per unit increase

3) what is break even point in dollars? sales price: $100, variable cost per unit: $40, total fixed cost :$ 120,000

4) Company expects to sell 2500 units next year. they don't want to increase the sales price and the fixed costs cant be change. how much could they afford to pay in variable cost ( per unit) if they want pre-tax operating profit of $40,000? sales price $100, variable cost per unit $40 and total fixed cost $120,000

Reference no: EM131225076

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