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Marchete Company produces a single product. They have recently received the results of a market survey that indicates that they can increase the retail price of their product by 10% without losing customers or market share. All other costs will remain unchanged. Their most recent CVP analysis is presented below. Units sold Sales Price per Unit Current 980 $140 $98 Variable Cost per Unit Contribution Margin per Unit $42 Fixed Costs $35,868 Break-Even (in units) 854 Break-Even (in dollars) $119,560 Sales $137,200 Variable Costs $96,040 Contribution Margin $41,160 Fixed Costs $35,868 Net Income (loss) $5,292 If they enact the 10% price increase, what will be their new break-even point in units and dollars?

Marchete Company produces a single product. They have recently received the results of a market survey that indicates that they can increase the retail price of their product by 10% without losing customers or market share. All other costs will remain unchanged. Their most recent CVP analysis is presented below. Units sold Sales Price per Unit Current 980 $140 $98 Variable Cost per Unit Contribution Margin per Unit $42 Fixed Costs $35,868 Break-Even (in units) 854 Break-Even (in dollars) $119,560 Sales $137,200 Variable Costs $96,040 Contribution Margin $41,160 Fixed Costs $35,868 Net Income (loss) $5,292 If they enact the 10% price increase, what will be their new break-even point in units and dollars?

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Marchete Company produces a single product. They have recently received the results of a market survey that indicates that they can increase the retail price of their product by 10% without losing customers or market share. All other costs will remain unchanged. Their most recent CVP analysis is presented below. Units sold Sales Price per Unit Current 980 $140 $98 Variable Cost per Unit Contribution Margin per Unit $42 Fixed Costs $35,868 Break-Even (in units) 854 Break-Even (in dollars) $119,560 Sales $137,200 Variable Costs $96,040 Contribution Margin $41,160 Fixed Costs $35,868 Net Income (loss) $5,292 If they enact the 10% price increase, what will be their new break-even point in units and dollars?
Transcribed Image Text:Marchete Company produces a single product. They have recently received the results of a market survey that indicates that they can increase the retail price of their product by 10% without losing customers or market share. All other costs will remain unchanged. Their most recent CVP analysis is presented below. Units sold Sales Price per Unit Current 980 $140 $98 Variable Cost per Unit Contribution Margin per Unit $42 Fixed Costs $35,868 Break-Even (in units) 854 Break-Even (in dollars) $119,560 Sales $137,200 Variable Costs $96,040 Contribution Margin $41,160 Fixed Costs $35,868 Net Income (loss) $5,292 If they enact the 10% price increase, what will be their new break-even point in units and dollars?
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