For the current year ending January 31, Harp Company expects fixed costs of $188,500 and a unit variable cost of $51.50. For the coming year, a i wage contract will increase the unit variable cost to $55.50. The selling price of $70.00 per unit is expected to remain the same. Required: a. Compute the break-even sales (units) for the current year. Round your answer to the nearest whole number. units b. Compute the anticipated break-even sales (units) for the coming year, assuming the new wage contract is signed. units

For the current year ending January 31, Harp Company expects fixed costs of $188,500 and a unit variable cost of $51.50. For the coming year, a i wage contract will increase the unit variable cost to $55.50. The selling price of $70.00 per unit is expected to remain the same. Required: a. Compute the break-even sales (units) for the current year. Round your answer to the nearest whole number. units b. Compute the anticipated break-even sales (units) for the coming year, assuming the new wage contract is signed. units

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter2: Basic Cost Management Concepts

Section: Chapter Questions

Problem 4CE: Refer to Cornerstone Exercises 2.2 and 2.3. Next year, Pietro expects to produce 50,000 units and...

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