Xyz corporations production of widgets has a fixed cost of, Financial Management

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Xyz corporations production of widgets has a fixed cost of

XYZ Corporation’s production of widgets 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?

A. If XYZ Corporation finds a more efficient way of production and the variable cost drops to $0.94 what is the new breakeven point?

B. If the market becomes saturated and XYZ Corporation drops the price from $6.50 to $4.00 but the variable cost stay at $0.94 what is the new breakeven point?

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