Belton Company Currently sells its products for $25 per unit. Management is contemplating a 20% increase in the sale price for the next year. Variable costs are currently 30% of sales revenue and are not expected to change next year. Fixed expenses are 150,000 per year. If fixed costs increase 10% next year, and the new sale price per unit goes into effect, how many units will need to be sold to breakeven?
BEP will be 7333 units | ||
Working | ||
BEP= Fixed cost / Contribution per unit | 7,333 | 165000/22.5 |
Contribution= Sales less variable cost | 22.5 | 30-7.5 |
Belton Company Currently sells its products for $25 per unit. Management is contemplating a 20% increase...
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