Lablanc Inc. sells a product for $116 per unit. The variable cost is $60 per unit, while fixed costs are $1,185,408. Determine (a) the break-even point in sales units and (b) the break-even point if the selling price were increased to $123 per unit. a. Break-even point in sales units fill in the blank 1 units b. Break-even point if the selling price were increased to $123 per unit fill in the blank 2 un
Lablanc Inc. sells a product for $116 per unit. The variable cost is $60 per unit, while fixed costs are $1,185,408. Determine (a) the break-even point in sales units and (b) the break-even point if the selling price were increased to $123 per unit. a. Break-even point in sales units fill in the blank 1 units b. Break-even point if the selling price were increased to $123 per unit fill in the blank 2 un
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Lablanc Inc. sells a product for $116 per unit. The variable cost is $60 per unit, while fixed costs are $1,185,408.
Determine (a) the break-even point in sales units and (b) the break-even point if the selling price were increased to $123 per unit.
| a. Break-even point in sales units | fill in the blank 1 units |
| b. Break-even point if the selling price were increased to $123 per unit | fill in the blank 2 units |
Expert Solution
Step 1 Introduction
The question is based on the concept of Cost Accounting.
Break even point is the point at which there will be no profit or no loss. Also at this point total contribution becomes equal to the fixed cost.
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