Accounting
posted by Anonymous .
Currently, the unit selling price of a product is $110, the unit variable cost is $80, and the total fixed costs are $345,000. A proposal is being evaluated to increase the unit selling price to $120.
a. Compute the current breakeven sales (units).
units
b. Compute the anticipated breakeven sales (units), assuming that the unit selling price is increased and all costs remain constant.
units

a) unit margin =11080 = 30
Fixed cost =345000
Breakeven = 345000/30 = 11500 units
b) new breakeven = 345000/40 = 8625 units
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