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Break-Even Point Hilton Enterprises sells a product for $119 per unit. The variable cost is $68 per unit, while fixed costs a
reak-Even Point Hilton Enterprises sells a product for $119 per unit. The variable cost is $68 per unit, while fixed costs ar
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Answer #1

a.

Selling price per unit = $119

Variable cost per unit = $68

Contribution margin per unit = Selling price per unit - Variable cost per unit

= 119-68

= $51

Fixed cost= $436,968

Break even point ( in units) = Fixed cost/ Contribution margin per unit

= 436,968/51

= 8,568 units

Break even point in sales units 8,568 units

b.

Selling price per unit = $124

Variable cost per unit = $68

Contribution margin per unit = Selling price per unit - Variable cost per unit

= 124-68

= $56

Fixed cost= $436,968

Break even point ( in units) = Fixed cost/ Contribution margin per unit

= 436,968/56

= 7,803 units

Break even point if the selling price were increase to $124 per unit 7,803 units

Kindly comment if you need further assistance. Thanks‼!

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