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A. Compute the current break-even sales (units). B. Compute the anticipated break-even sales (units), assuming that the unit selling price is increased and all costs remain constant.

A. Compute the current break-even sales (units). B. Compute the anticipated break-even sales (units), assuming that the unit selling price is increased and all costs remain constant.

Practical Management Science
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
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Currently, the unit selling price of a product is $160, the unit variable cost is $120, and the
total fixed costs are $725,000. A proposal is being evaluated to increase the unit selling price
to $170.
Total Costs Units Produced
April 300,000 2,700
May 440,000 5,500
June 325,000 3,500 
A. Compute the current break-even sales (units).
B. Compute the anticipated break-even sales (units), assuming that the unit selling price is
increased and all costs remain constant. 

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