The Sunshine Company manufactures and sells pens. Currently, 6,000,000 units are sold per year at $0.70 per unit. Fixed costs are $980,000 per year. Variable costs are $0.30 per unit. Compute the new breakeven point in units for each of the following changes: 4. A 10% increase in fixed costs 5. A 10% increase in selling price and a $20,000 increase in fixed costs
The Sunshine Company manufactures and sells pens. Currently, 6,000,000 units are sold per year at $0.70 per unit. Fixed costs are $980,000 per year. Variable costs are $0.30 per unit. Compute the new breakeven point in units for each of the following changes: 4. A 10% increase in fixed costs 5. A 10% increase in selling price and a $20,000 increase in fixed costs
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter16: Cost-volume-profit Analysis
Section: Chapter Questions
Problem 9E: Gelbart Company manufactures gas grills. Fixed costs amount to 16,335,000 per year. Variable costs...
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The Sunshine Company manufactures and sells pens. Currently, 6,000,000 units are sold per year
at $0.70 per unit. Fixed costs are $980,000 per year. Variable costs are $0.30 per unit.
Compute the new breakeven point in units for each of the following changes:
4. A 10% increase in fixed costs
5. A 10% increase in selling price and a $20,000 increase in fixed costs
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