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 930 Sales Price per Unit $130 Variable Cost per Unit $99 Contribution Margin per Unit $31 Fixed Costs $26,350 Break-Even (in units) 850 Break-Even (in dollars) $110,500 Sales $120,900 Variable Costs $92,070 Contribution Margin $28,830 Fixed Costs $26,350 Net Income (loss) $2,480 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.

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 930 Sales Price per Unit $130 Variable Cost per Unit $99 Contribution Margin per Unit $31 Fixed Costs $26,350 Break-Even (in units) 850 Break-Even (in dollars) $110,500 Sales $120,900 Variable Costs $92,070 Contribution Margin $28,830 Fixed Costs $26,350 Net Income (loss) $2,480 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.

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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