Contribution Margin per unit Sale per price-Variable cost per unit %3D =0,60-0,22 %3D 0.38 per unit Break-even Volume = Fixed Cost/Contribution Margin per unit = 25,000/0.38 per unit %3D = 65,789 %3D 6.lf Evergreen Fertilizer Company increases its advertising expenditures by $14.000 per year, what effect will the increase have on the break-even volume computed in Problem ?

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Contribution Margin per unjt Sale per price-Variable cost per unit
3D0,50-0.22
3D0.38per unit
Break-even Volume Fixed Cost/Contribution Margin per unit
3D25,000/0,38 per unit
=65,789
6.1f Evergreen Fertilizer Company increases its advertising expenditures by
$14,000 per year, what effect will the increase have on the break-even volume
computed in Problem ?
Transcribed Image Text:Contribution Margin per unjt Sale per price-Variable cost per unit 3D0,50-0.22 3D0.38per unit Break-even Volume Fixed Cost/Contribution Margin per unit 3D25,000/0,38 per unit =65,789 6.1f Evergreen Fertilizer Company increases its advertising expenditures by $14,000 per year, what effect will the increase have on the break-even volume computed in Problem ?
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