Break-even sales Currently, the unit selling price of a product is $270, the unit variable cost is $220, and the total fixed costs are $520,000. A proposal is being evaluated to increase the unit selling price to $300. a. Compute the current break-even sales (units). fill in the blank 1 of 1 units b. Compute the anticipated break-even sales (units), assuming that the unit selling price is increased and all costs remain constant. fill in the blank 1 of 1 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
Chapter6: Cost-volume-profit Analysis
Section: Chapter Questions
Problem 13E
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Break-even sales

Currently, the unit selling price of a product is $270, the unit variable cost is $220, and the total fixed costs are $520,000. A proposal is being evaluated to increase the unit selling price to $300.

a.  Compute the current break-even sales (units).
fill in the blank 1 of 1 units

b.  Compute the anticipated break-even sales (units), assuming that the unit selling price is increased and all costs remain constant.
fill in the blank 1 of 1 units

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