Variable cost per unit = 240*10% = 24
New selling price = 240*1.4 = 336
Fixed cost = 130000*1.2 = 156000
Break even unit = Fixed cost/Contribution margin per unit = 156000/(336-24) = 500 Units
So answer is a) 500 Units
#1 Martin Compary currently sells its products for $240 per unit Management is contemplating a 40...
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