Break-Even Sales
Currently, the unit selling price of a product is $390, the unit variable cost is $320, and the total fixed costs are $1,008,000. A proposal is being evaluated to increase the unit selling price to $440.
a. Compute the current break-even sales (units).
Answer: ________ units
b. Compute the anticipated break-even sales (units), assuming that the unit selling price is increased and all costs remain constant.
Answer: ________ units