Assume the following information: Volume 700,000 units Total variable costs $ 1,75,00,000 Total fixed costs $ 98,00,000 $ 50 Revenue per unit If the company decreases the volume to 650,000 units, what is the profit per unit assuming both 700,000 units and 650,000 units are within the relevant range? a. $10.21 b. $9.92 c. $8.56 d. $7.97

EBK CONTEMPORARY FINANCIAL MANAGEMENT
14th Edition
ISBN:9781337514835
Author:MOYER
Publisher:MOYER
Chapter14: Capital Structure Management In Practice
Section14.A: Breakeven Analysis
Problem 7P
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The relevant range??

Assume the following information:
Volume
700,000 units
Total variable costs
$ 1,75,00,000
Total fixed costs
$ 98,00,000
$ 50
Revenue per unit
If the company decreases the volume to 650,000 units, what is the
profit per unit assuming both 700,000 units and 650,000 units are within
the relevant range?
a. $10.21
b. $9.92
c. $8.56
d. $7.97
Transcribed Image Text:Assume the following information: Volume 700,000 units Total variable costs $ 1,75,00,000 Total fixed costs $ 98,00,000 $ 50 Revenue per unit If the company decreases the volume to 650,000 units, what is the profit per unit assuming both 700,000 units and 650,000 units are within the relevant range? a. $10.21 b. $9.92 c. $8.56 d. $7.97
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