Reliable Delivery currently delivers packages for $9 each. The variable cost is $3 per package, and fixed costs are $60,000 per month.
Compute the break-even point in both sales dollars and units under each of the following independent assumptions. Comment on why the break-even points are different.
The costs and selling price are as just given.
Fixed costs are increased to $75,000.
Selling price is increased by 10%. (Fixed costs are $60,000.)
Variable cost is increased to $4.50 per unit. (Fixed costs are $60,000 and selling price is $9.)