Answered: A. Compute the current break-even sales…

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.

Marketing

20th Edition

ISBN:9780357033791

Author:Pride, William M

Publisher:Pride, William M

Chapter19: Pricing Concepts

Section: Chapter Questions

Problem 6DRQ

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Question

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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