Edgewater Enterprises manufactures two products. Information follows: Sales price Product A $ 12.00 Variable cost per unit $ 6.20 Product B $ 15.25 $ 6.90 Product mix 30% 70% M6-19 [LO 6-6] Suppose that each product's sales price increases by 20 percent. Sales mix remains the same and total fixed costs are $235,000. Required: Calculate the new break-even point in units for Edgewater. Note: Round your intermediate calculations to 2 decimal places and final answers to the nearest whole number. Units of Product A Units of Product B
Edgewater Enterprises manufactures two products. Information follows: Sales price Product A $ 12.00 Variable cost per unit $ 6.20 Product B $ 15.25 $ 6.90 Product mix 30% 70% M6-19 [LO 6-6] Suppose that each product's sales price increases by 20 percent. Sales mix remains the same and total fixed costs are $235,000. Required: Calculate the new break-even point in units for Edgewater. Note: Round your intermediate calculations to 2 decimal places and final answers to the nearest whole number. Units of Product A Units of Product B
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Domestic
![Edgewater Enterprises manufactures two products. Information follows:
Product A
Sales price
Product mix
$ 12.00
Variable cost per unit
$ 6.20
30%
Product B
$ 15.25
$ 6.90
70%
M6-19 [LO 6-6]
Suppose that each product's sales price increases by 20 percent. Sales mix remains the same and total fixed costs are $235,000.
Required:
Calculate the new break-even point in units for Edgewater.
Note: Round your intermediate calculations to 2 decimal places and final answers to the nearest whole number.
Units of Product A
Units of Product B](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F0d9ea52c-ac76-47c8-896f-5164b734aaba%2F93cf4c84-eabf-4ecd-9f39-1843f3487346%2Fzopvjh_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Edgewater Enterprises manufactures two products. Information follows:
Product A
Sales price
Product mix
$ 12.00
Variable cost per unit
$ 6.20
30%
Product B
$ 15.25
$ 6.90
70%
M6-19 [LO 6-6]
Suppose that each product's sales price increases by 20 percent. Sales mix remains the same and total fixed costs are $235,000.
Required:
Calculate the new break-even point in units for Edgewater.
Note: Round your intermediate calculations to 2 decimal places and final answers to the nearest whole number.
Units of Product A
Units of Product B
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 4 steps
Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education