A product sells for $72 per unit and has variable costs of $38 per unit. The fixed costs are $66,605. If the variable costs per unit were to decrease by $8 per unit and fixed costs increase to $105,636, and the selling price does not change, break-even point in units would:
new fixed cost / new contribution margin per unit = new breakeven sale in units
Product Sells Per Unit |
$ 72.00 |
Variable Cost |
$ 38.00 |
Fixed Cost |
$ 66,605.00 |
Increase/Decrease VC |
$ (8.00) |
Increase/Decrease FC |
$105,636.00 |
Increase/Decrease Selling |
$ - |
Change in VC |
$ 30.00 |
Change in FC |
$172,241.00 |
Change in Selling |
$ 72.00 |
|
|
New Breakeven Sale In Units |
4100.98 |
|
|
Answer Supposed to be |
2515 |