Nicolas Enterprises sells a product for $55 per unit. The variable cost is $34 per unit, while fixed costs are $37,044....
Nicolas Enterprises sells a product for $55 per unit. The variable cost is $34 per unit, while fixed costs are $37,044.
Determine (a) the break-even point in sales units and (b) the break-even point if the selling price were increased to $62 per unit.
| a. Break-even point in sales units | units |
| b. Break-even point if the selling price were increased to $62 per unit | units |
Homework Answers
|
Break even point = Fixed cost/Contribution margin per unit = 37,044/(55-34) = 1764 units |
|
|
Break even point = 37,044/(62-34) = 1323 units |
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