Question

A company increased the selling price for its product from $1.00 to $1.10 a unit when...

A company increased the selling price for its product from $1.00 to $1.10 a unit when total fixed expenses increased from $400,000 to $480,000 and the variable expense per unit remained unchanged at $0.50. How would these changes affect the break-even point in units?

The break-even point in units would increase.

The break-even point in units would decrease.

The break-even point in units would remain unchanged.

The effect cannot be determined from the information given.

Homework Answers

Answer #1

Answer to the above question is shown.

Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Multiple choice: If a company increases its selling price by $2 per unit due to an...
Multiple choice: If a company increases its selling price by $2 per unit due to an increase in its variable labor cost of $2 per unit, the break-even point in units will: decrease increase not change change but direction cannot be determined.
If fixed costs increased and variable costs per unit decreased, the break-even point would a. decrease...
If fixed costs increased and variable costs per unit decreased, the break-even point would a. decrease b. increase c. remain the same d. cannot be determined from the data provided
If a company increases its selling price by $2 due to an increase in its variable...
If a company increases its selling price by $2 due to an increase in its variable labor cost of $2 per unit, the break even point in units will: Increase change but direction cannot be determined decrease not change
Wardley Corporation sells its product for $40. The variable costs are $18 per unit. Fixed costs...
Wardley Corporation sells its product for $40. The variable costs are $18 per unit. Fixed costs are $16,000. The company is considering the purchase of an automated machine that will result in a $2 reduction in unit variable costs and an increase of $5,000 in fixed costs. Which of the following is true about the break-even point in units?         It will increase.         It cannot be determined from the information provided.         It will remain unchanged....
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
If a firm finds it necessary to reduce the price per unit because of increased foreign...
If a firm finds it necessary to reduce the price per unit because of increased foreign competition, then its break-even point will ( increase, decrease, or not change) . (Assume that all other factors remain unchanged.)
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.
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT