es Zulu sells its waterproof phone case for $93 per unit. Fixed costs total $208,000, and variable costs are $43 per unit. (a) Compute its break-even point in units. Numerator: Total fixed costs Denominator: Sales per unit Sales per unit Variable cost per unit Contribution margin per unit Total fixed costs Break Even Units Break even units (b) Will the break-even point in units increase or decrease in response to each of the following independent changes? Change 1. Fixed costs increase to $228,000 2. Variable costs decrease to $28 per unit 3. Selling price per unit decreases to $83 hit cont Break-Even in Units Will

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Zulu sells its waterproof phone case for $93 per unit. Fixed costs total $208,000, and variable costs are $43 per unit.
(a) Compute its break-even point in units.
Numerator:
Total fixed costs
Denominator:
Sales per unit
Sales per unit
Variable cost per unit
Contribution margin per unit
Total fixed costs
Break Even Units
Break even units
(b) Will the break-even point in units increase or decrease in response to each of the following independent changes?
Change
1. Fixed costs increase to $228,000
2. Variable costs decrease to $28 per unit
3. Selling price per unit decreases to $83
hit cont
Break-Even in
Units Will
Transcribed Image Text:es Zulu sells its waterproof phone case for $93 per unit. Fixed costs total $208,000, and variable costs are $43 per unit. (a) Compute its break-even point in units. Numerator: Total fixed costs Denominator: Sales per unit Sales per unit Variable cost per unit Contribution margin per unit Total fixed costs Break Even Units Break even units (b) Will the break-even point in units increase or decrease in response to each of the following independent changes? Change 1. Fixed costs increase to $228,000 2. Variable costs decrease to $28 per unit 3. Selling price per unit decreases to $83 hit cont Break-Even in Units Will
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