Question

Break-Even Sales Currently, the unit selling price of a product is $200, the unit variable cost...

Break-Even Sales

Currently, the unit selling price of a product is $200, the unit variable cost is $160, and the total fixed costs are $360,000. A proposal is being evaluated to increase the unit selling price to $220.

a. Compute the current break-even sales (units).

b. Compute the anticipated break-even sales (units), assuming that the unit selling price is increased and all costs remain constant.

Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

a) Current break even sale units

Breakeven sale units = Fixed costs / Contribution margin per unit

Contribution margin per unit = Selling price - Variable cost per unit

= 200 - 160

Contribution margin per unit = 40

Breakeven sale units = 360,000 / 40

Breakeven sale units = 9000 units

b) anticipated break even sales

Contribution margin per unit = 220 - 160

Contribution margin per unit = 60

Breakeven sale units = 360,000 / 60

Breakeven sale units = 6000 units

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Break-Even Sales Currently, the unit selling price of a product is $320, the unit variable cost...
Break-Even Sales Currently, the unit selling price of a product is $320, the unit variable cost is $260, and the total fixed costs are $918,000. A proposal is being evaluated to increase the unit selling price to $350. 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
Break-Even Sales Currently, the unit selling price of a product is $320, the unit variable cost...
Break-Even Sales Currently, the unit selling price of a product is $320, the unit variable cost is $260, and the total fixed costs are $810,000. A proposal is being evaluated to increase the unit selling price to $350. 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
Break-Even Sales Currently, the unit selling price of a product is $230, the unit variable cost...
Break-Even Sales Currently, the unit selling price of a product is $230, the unit variable cost is $190, and the total fixed costs are $448,000. A proposal is being evaluated to increase the unit selling price to $260. 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 to the proposed $260, and all costs remain constant. units
Break-Even Sales Currently, the unit selling price of a product is $230, the unit variable cost...
Break-Even Sales Currently, the unit selling price of a product is $230, the unit variable cost is $190, and the total fixed costs are $420,000. A proposal is being evaluated to increase the unit selling price to $260. 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 to the proposed $260, and all costs remain constant. units
Break-Even Point Nicolas Enterprises sells a product for $95 per unit. The variable cost is $43...
Break-Even Point Nicolas Enterprises sells a product for $95 per unit. The variable cost is $43 per unit, while fixed costs are $1,116,752. Determine (a) the break-even point in sales units and (b) the break-even point if the selling price were increased to $102 per unit. a. Break-even point in sales units units b. Break-even point if the selling price were increased to $102 per unit units
Break-Even Point Nicolas Inc. sells a product for $62 per unit. The variable cost is $38...
Break-Even Point Nicolas Inc. sells a product for $62 per unit. The variable cost is $38 per unit, while fixed costs are $69,120. Determine (a) the break-even point in sales units and (b) the break-even point if the selling price were increased to $68 per unit. a. Break-even point in sales units units b. Break-even point if the selling price were increased to $68 per unit units
Break-Even Point Hilton Enterprises sells a product for $104 per unit. The variable cost is $51...
Break-Even Point Hilton Enterprises sells a product for $104 per unit. The variable cost is $51 per unit, while fixed costs are $1,160,117. Determine (a) the break-even point in sales units and (b) the break-even point if the selling price were increased to $110 per unit. a. Break-even point in sales units units b. Break-even point if the selling price were increased to $110 per unit units
Break-Even Point Hilton Enterprises sells a product for $115 per unit. The variable cost is $76...
Break-Even Point Hilton Enterprises sells a product for $115 per unit. The variable cost is $76 per unit, while fixed costs are $357,435. Determine (a) the break-even point in sales units and (b) the break-even point if the selling price were increased to $123 per unit. a. Break-even point in sales units units b. Break-even point if the selling price were increased to $123 per unit units Target Profit Trailblazer Company sells a product for $245 per unit. The variable...
RUSH The unit selling price of a product is $150, the unit variable cost is $90,...
RUSH The unit selling price of a product is $150, the unit variable cost is $90, and the total fixed costs are $50,000. Break-even sales (in units) are 334 556 834 209
Sales Mix and Break-Even Analysis Jordan Company has fixed costs of $98,260. The unit selling price,...
Sales Mix and Break-Even Analysis Jordan Company has fixed costs of $98,260. The unit selling price, variable cost per unit, and contribution margin per unit for the company's two products are provided below. Product Selling Price Variable Cost per Unit Contribution Margin per Unit Model 94 $100 $60 $40 Model 81 160 140 20 The sales mix for products Model 94 and Model 81 is 70% and 30%, respectively. Determine the break-even point in units of Model 94 and Model...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT