Question

# Hilton Enterprises sells a product for \$104 per unit. The variable cost is \$69 per unit,...

Hilton Enterprises sells a product for \$104 per unit. The variable cost is \$69 per unit, while fixed costs are \$257,250.

Determine (a) the break-even point in sales units and (b) the break-even point if the selling price were increased to \$111 per unit.

 a. Break-even point in sales units units b. Break-even point if the selling price were increased to \$111 per unit units

 a Break even point in sales unit = Fixed cost/Contribution per unit = where contribution per unit = Sales per unit less Variable cost per unit = =257250/35 = 7350 working note-1, Calculation of Contribution per unit Sales per unit \$104.00 Less: Variable cost per unit \$69.00 contribtion per unit \$35.00 b Break even point if selling price increased to \$111 = Fixed cost/Contribution per unit = where contribution per unit = Sales per unit less Variable cost per unit = =257250/42 = 6125 working note-1, Calculation of Contribution per unit Sales per unit = \$111.00 Less: Variable cost per unit = \$69.00 contribtion per unit = \$42.00

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