Laguna Print makes advertising hangers that are placed on doorknobs. It charges $0.12 and estimates its variable cost to be $0.07 per hanger. Laguna's total fixed cost is $2,583 per month, which consists primarily of printer depreciation and rent. Suppose that the cost of paper has increased and Laguna's variable cost per unit increases to $0.099 per hanger. Calculate its new break-even point assuming this increase is not passed along to customers. (Round your intermediate calculations to 3 decimal places and final answer to the nearest whole number.)
Laguna Print makes advertising hangers that are placed on doorknobs. It charges $0.12 and estimates its variable cost to be $0.07 per hanger. Laguna's total fixed cost is $2,583 per month, which consists primarily of printer depreciation and rent. Suppose that the cost of paper has increased and Laguna's variable cost per unit increases to $0.099 per hanger. Calculate its new break-even point assuming this increase is not passed along to customers. (Round your intermediate calculations to 3 decimal places and final answer to the nearest whole number.)
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter16: Cost-volume-profit Analysis
Section: Chapter Questions
Problem 20E
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![Laguna Print makes advertising hangers that are placed on doorknobs. It charges $0.12 and estimates its variable cost to be $0.07 per
hanger. Laguna's total fixed cost is $2,583 per month, which consists primarily of printer depreciation and rent. Suppose that the cost
of paper has increased and Laguna's variable cost per unit increases to $0.099 per hanger.
Calculate its new break-even point assuming this increase is not passed along to customers. (Round your intermediate calculations
to 3 decimal places and final answer to the nearest whole number.)
New break-even
Hangers](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F6bfa4a1f-51a5-4efe-934e-7724bdb991d2%2Fa80a8628-ef3a-408e-9e64-f16d179b4327%2Fqe3gfmk_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Laguna Print makes advertising hangers that are placed on doorknobs. It charges $0.12 and estimates its variable cost to be $0.07 per
hanger. Laguna's total fixed cost is $2,583 per month, which consists primarily of printer depreciation and rent. Suppose that the cost
of paper has increased and Laguna's variable cost per unit increases to $0.099 per hanger.
Calculate its new break-even point assuming this increase is not passed along to customers. (Round your intermediate calculations
to 3 decimal places and final answer to the nearest whole number.)
New break-even
Hangers
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