If fixed costs are $282,000, the unit selling price is $31, and the unit variable costs are $18, what are the break-even...
If fixed costs are $282,000, the unit selling price is $31, and the unit variable costs are $18, what are the break-even sales (units) if fixed costs are reduced by $33,300?
a.15,305 units
b.22,957 units
c.28,696 units
d.19,131 units
Homework Answers
New fixed costs=282,000-33,300=$248700
Contribution margin=Sales-Variable cost
=31-18=$13 per unit
Breakeven=fixed costs/Contribution margin
=$248700/13
=19131 units(Approx).
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