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
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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
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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