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.
Chapter3: Cost-volume-profit Analysis
Section: Chapter Questions
Problem 8EA: Marchete Company produces a single product. They have recently received the results of a market...
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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
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.
New Price
Break-even (in units)
Break-even (in dollars) $
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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
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.
New Price
Break-even (in units)
Break-even (in dollars) $
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