If the variable costs per unit were to decrease by 8 per


A product sells for $72 per unit and has variable costs of $38 per unit. The fixed costs are $66,605. If the variable costs per unit were to decrease by $8 per unit and fixed costs increase to $105,636, and the selling price does not change, break-even point in units would: 

new fixed cost / new contribution margin per unit = new breakeven sale in units

Product Sells Per Unit $ 72.00
Variable Cost $ 38.00
Fixed Cost $ 66,605.00
Increase/Decrease VC $ (8.00)
Increase/Decrease FC $105,636.00
Increase/Decrease Selling $                 -  
Change in VC $ 30.00
Change in FC $172,241.00
Change in Selling $ 72.00
   
New Breakeven Sale In Units 4100.98
   
Answer Supposed to be 2515

Solution Preview :

Prepared by a verified Expert
Accounting Basics: If the variable costs per unit were to decrease by 8 per
Reference No:- TGS02550839

Now Priced at $10 (50% Discount)

Recommended (97%)

Rated (4.9/5)