Problem:
Calculate the unknown for the following situations based on the data below. All situations are independent of each other.
Total fixed costs $100,000
Unit selling price $50
Unit variable cost $30
a) Calculate the following:
1) break-even point in units
2) break-even point in dollar sales
b) Assume the unit selling price increases by 5%. Other data unchanged.
Calculate the break-even point in units.
c) Assume the unit variable costs increase by 10%. Other data is unchanged.
Calculate the break-even point in units.
d) Assume total fixed costs increase by $5,000. Other data is unchanged.
Calculate the break-even points in units.