Solution-Discuss if the variable costs per unit were to

Discuss if the variable costs per unit were to decrease

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Reference no: EM131755326

A product sells for $72 per unit and has variable costs of $38 per unit. The fixed costs are $66,605. If the variable costs per unit were to decrease by $8 per unit and fixed costs increase to $105,636, and the selling price does not change, break-even point in units would:

new fixed cost / new contribution margin per unit = new breakeven sale in units

Product Sells Per Unit	$ 72.00
Variable Cost	$ 38.00
Fixed Cost	$ 66,605.00
Increase/Decrease VC	$ (8.00)
Increase/Decrease FC	$105,636.00
Increase/Decrease Selling	$ -
Change in VC	$ 30.00
Change in FC	$172,241.00
Change in Selling	$ 72.00

New Breakeven Sale In Units	4100.98

Answer Supposed to be	2515

Reference no: EM131755326

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Discuss if the variable costs per unit were to decrease

Reference no: EM131755326

Reference no: EM131755326

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