AAA Corporation’s production of widget has a fixed cost of $124,000 and a variable cost of $1.24 per unit. If the widgets sell for $6.50 what is the breakeven point in units sold? _______
If AAA Corporation finds a more efficient way of production and the variable cost drops to $0.94 what is the new breakeven point? _________
If the market becomes saturated and AAA Corporation drops the price from $6.50 to $4.00 but the variable cost stay at $0.94 what is the new breakeven point? ________
Please show calculations