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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. Current Units sold Sales Price per Unit Variable Cost per Unit Contribution Margin per Unit Fixed Costs Break-Even (in units) Break-Even (in dollars) Sales Variable Costs Contribution Margin 920 $140 $97 $43 $36,378 Break-even (in units) Break-even (in dollars) $ 846 $118,440 $128,800 $89,240 $39,560 $36,378 $3,182 Fixed Costs Net Income (loss) If they enact the 10% price increase, what will be their new break-even point in units and dollars? If required, round final answers to nearest whole number. New Price (?)

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. Current Units sold Sales Price per Unit Variable Cost per Unit Contribution Margin per Unit Fixed Costs Break-Even (in units) Break-Even (in dollars) Sales Variable Costs Contribution Margin 920 $140 $97 $43 $36,378 Break-even (in units) Break-even (in dollars) $ 846 $118,440 $128,800 $89,240 $39,560 $36,378 $3,182 Fixed Costs Net Income (loss) If they enact the 10% price increase, what will be their new break-even point in units and dollars? If required, round final answers to nearest whole number. New Price (?)

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. Current Units sold Sales Price per Unit Variable Cost per Unit Contribution Margin per Unit Fixed Costs Break-Even (in units) Break-Even (in dollars) Sales Variable Costs Contribution Margin 920 $140 $97 $43 $36,378 Break-even (in units) Break-even (in dollars) 846 $118,440 $128,800 $89,240 $39,560 $36,378 $3,182 Fixed Costs Net Income (loss) If they enact the 10% price increase, what will be their new break-even point in units and dollars? If required, round final answers to nearest whole number. New Price (?)
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. Current Units sold Sales Price per Unit Variable Cost per Unit Contribution Margin per Unit Fixed Costs Break-Even (in units) Break-Even (in dollars) Sales Variable Costs Contribution Margin 920 $140 $97 $43 $36,378 Break-even (in units) Break-even (in dollars) 846 $118,440 $128,800 $89,240 $39,560 $36,378 $3,182 Fixed Costs Net Income (loss) If they enact the 10% price increase, what will be their new break-even point in units and dollars? If required, round final answers to nearest whole number. New Price (?)
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