Question: Refer to the information from QS. How will the break-even point in units change in response to each of the following independent changes in selling price per unit, variable cost per unit, or total fixed costs? Use I for increase and D for decrease. (It is not necessary to compute new break-even points.)
Change Break-even in Units Will
1. Total fixed cost to $520,000 . . . . . . . . __________
2. Variable cost to $134 per unit . . . . . . . __________
3. Selling price per unit to $290 . . . . . . . __________
4. Variable cost to $100 per unit . . . . . . . __________
5. Total fixed cost to $544,000 . . . . . . . . __________
6. Selling price per unit to $320 . . . . . . . __________
QS: MCU Phone Company sells its cordless phone for $300 per unit. Fixed costs total $540,000, and variable costs are $120 per unit. Determine the
(1) contribution margin per unit and
(2) break-even point in units.