Edgewater Enterprises manufactures two products. Information follows:
Product A | Product B | |||||
Sales price | $ | 13.50 | $ | 16.75 | ||
Variable cost per unit | $ | 6.35 | $ | 7.05 | ||
Product mix | 40% | 60% | ||||
Suppose that each product’s sales price increases by 20 percent. Sales mix remains the same and total fixed costs are $250,000.
Calculate the new break-even point for Edgewater. (Round
your intermediate calculations to 2 decimal places and final
answers to the nearest whole number.)
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