If fixed costs are $306,000, the unit selling price is $71, and the unit variable costs are $54, what are the old and new break-even sales (units) if the unit selling price increases by $4? a.4,310 units and 18,000 units b.18,000 units and 14,571 units c.5,667 units and 14,071 units d.18,000 units and 4,310 units
If fixed costs are $306,000, the unit selling price is $71, and the unit variable costs are $54, what are the old and new break-even sales (units) if the unit selling price increases by $4? a.4,310 units and 18,000 units b.18,000 units and 14,571 units c.5,667 units and 14,071 units d.18,000 units and 4,310 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
Chapter6: Cost-volume-profit Analysis
Section: Chapter Questions
Problem 3BE
Related questions
Question
If fixed costs are $306,000, the unit selling price is $71, and the unit variable costs are $54, what are the old and new break-even sales (units) if the unit selling price increases by $4?
a.4,310 units and 18,000 units
b.18,000 units and 14,571 units
c.5,667 units and 14,071 units
d.18,000 units and 4,310 units
Expert Solution
Break-even point
Break-even point refers to the point where the number of units sold is just sufficient to cover the fixed cost. At the break-even point, profit/loss is zero.
Step by step
Solved in 2 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Managerial Accounting
Accounting
ISBN:
9781337912020
Author:
Carl Warren, Ph.d. Cma William B. Tayler
Publisher:
South-Western College Pub
Principles of Accounting Volume 2
Accounting
ISBN:
9781947172609
Author:
OpenStax
Publisher:
OpenStax College
EBK CONTEMPORARY FINANCIAL MANAGEMENT
Finance
ISBN:
9781337514835
Author:
MOYER
Publisher:
CENGAGE LEARNING - CONSIGNMENT
Managerial Accounting
Accounting
ISBN:
9781337912020
Author:
Carl Warren, Ph.d. Cma William B. Tayler
Publisher:
South-Western College Pub
Principles of Accounting Volume 2
Accounting
ISBN:
9781947172609
Author:
OpenStax
Publisher:
OpenStax College
EBK CONTEMPORARY FINANCIAL MANAGEMENT
Finance
ISBN:
9781337514835
Author:
MOYER
Publisher:
CENGAGE LEARNING - CONSIGNMENT
Intermediate Financial Management (MindTap Course…
Finance
ISBN:
9781337395083
Author:
Eugene F. Brigham, Phillip R. Daves
Publisher:
Cengage Learning
Principles of Cost Accounting
Accounting
ISBN:
9781305087408
Author:
Edward J. Vanderbeck, Maria R. Mitchell
Publisher:
Cengage Learning
Managerial Accounting: The Cornerstone of Busines…
Accounting
ISBN:
9781337115773
Author:
Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:
Cengage Learning