How to compute the anticipated break-even sales


Unit selling price of a product is $300, the unit variable cost is $225, and the total fixed costs are $720,000. A proposal is being evaluated to increase the unit selling price to $345.

(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.

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Accounting Basics: How to compute the anticipated break-even sales
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