You are given the following information in respect of a company: Budgeted output 50, 000 units Selling Price per unit OMR 6.00 Variable Cost per unit OMR 4.00 Total Fixed Costs OMR 20,000 Draw a break-even chart showing the breakeven point. If the selling price is increased to OMR 7 per unit, what will be the new break- even point?

EBK CONTEMPORARY FINANCIAL MANAGEMENT
14th Edition
ISBN:9781337514835
Author:MOYER
Publisher:MOYER
Chapter14: Capital Structure Management In Practice
Section14.A: Breakeven Analysis
Problem 7P
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You are given the following information in respect of a company:
Budgeted output 50, 000 units
Selling Price per unit OMR 6.00
Variable Cost per unit OMR 4.00
Total Fixed Costs OMR 20,000
Draw a break-even chart showing the breakeven point. If the selling price is
increased to OMR 7 per unit, what will be the new break- even point?

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