Royal Enterprises has presented the following information for your analysis. Selling price per unit is $20 and variable cost per unit is $12 and fixed costs are $10,000. They sold 2000 units currently and management considers increasing selling price 10% next year. 1. What is current breakeven units? 2. What are current profits? 3. What would be breakeven units next year after they increased 10% selling price per unit?

Royal Enterprises has presented the following information for your analysis. Selling price per unit is $20 and variable cost per unit is $12 and fixed costs are $10,000. They sold 2000 units currently and management considers increasing selling price 10% next year. 1. What is current breakeven units? 2. What are current profits? 3. What would be breakeven units next year after they increased 10% selling price per unit?

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 13E

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