Currently, the unit selling price is $34, the variable cost is $14, and the total fixed costs, $96,000. A proposal is being evaluated to increase the selling price to $38. (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.

Currently, the unit selling price is $34, the variable cost is $14, and the total fixed costs, $96,000. A proposal is being evaluated to increase the selling price to $38. (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.

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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(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.