Barnam Company currently produces and sells 6,000 units of a product that has a contribution margin of $7 per unit. The company sells the product for a sales price of $24 per unit. Fixed costs are $29,400. The company has recently invested in new technology and expects the variable cost per unit to fall to $12 per unit. The investment is expected to increase fixed costs by $21,000. After the new investment is made, how many units must be sold to break-even? (Do not round intermediate calculations.) Multiple Choice 5,450 units 7,200 units 2,450 units 4,200 units

Barnam Company currently produces and sells 6,000 units of a product that has a contribution margin of $7 per unit. The company sells the product for a sales price of $24 per unit. Fixed costs are $29,400. The company has recently invested in new technology and expects the variable cost per unit to fall to $12 per unit. The investment is expected to increase fixed costs by $21,000. After the new investment is made, how many units must be sold to break-even? (Do not round intermediate calculations.) Multiple Choice 5,450 units 7,200 units 2,450 units 4,200 units

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter11: Differential Analysis And Product Pricing

Section: Chapter Questions

Problem 3CMA: Aril Industries is a multiproduct company that currently manufactures 30,000 units of Part 730 each...

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