Barnam Company currently produces and sells 6,000 units of a product that has a contribution margin of $7 per unit. The company sells the product for a sales price of $24 per unit. Fixed costs are $29,400. The company has recently invested in new technology and expects the variable cost per unit to fall to $12 per unit. The investment is expected to increase fixed costs by $21,000. After the new investment is made, how many units must be sold to break-even? (Do not round intermediate calculations.) Multiple Choice 5,450 units 7,200 units 2,450 units 4,200 units
Barnam Company currently produces and sells 6,000 units of a product that has a contribution margin of $7 per unit. The company sells the product for a sales price of $24 per unit. Fixed costs are $29,400. The company has recently invested in new technology and expects the variable cost per unit to fall to $12 per unit. The investment is expected to increase fixed costs by $21,000. After the new investment is made, how many units must be sold to break-even? (Do not round intermediate calculations.) Multiple Choice 5,450 units 7,200 units 2,450 units 4,200 units
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter11: Differential Analysis And Product Pricing
Section: Chapter Questions
Problem 3CMA: Aril Industries is a multiproduct company that currently manufactures 30,000 units of Part 730 each...
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![Barnam Company currently produces and sells 6,000 units of a product that has a contribution margin of $7 per unit. The company sells the product for a sales price of $24 per unit. Fixed costs are $29,400. The company has recently invested in new technology and expects the variable cost per
unit to fall to $12 per unit. The investment is expected to increase fixed costs by $21,000. After the new investment is made, how many units must be sold to break-even? (Do not round intermediate calculations.)
Multiple Choice
5,450 units
7,200 units
2,450 units
4,200 units](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F6a57b43a-8622-4253-b36f-09f28818a68a%2F66b413e0-1598-4ae1-a005-156aa690502e%2Fsboparr.png&w=3840&q=75)
Transcribed Image Text:Barnam Company currently produces and sells 6,000 units of a product that has a contribution margin of $7 per unit. The company sells the product for a sales price of $24 per unit. Fixed costs are $29,400. The company has recently invested in new technology and expects the variable cost per
unit to fall to $12 per unit. The investment is expected to increase fixed costs by $21,000. After the new investment is made, how many units must be sold to break-even? (Do not round intermediate calculations.)
Multiple Choice
5,450 units
7,200 units
2,450 units
4,200 units
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