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Selling Price per Unit: Happy boots sells hiking boots and has the following price/cost detail: 10 Total Fixed Costs: 12,000 Variable Costs per Unit: 6 Relevant Range of Production: 0 - 12,000 unit 1) Calculate the Breakeven point in units. 2) Calculate the Breakeven point in dollars. 3) How many units need to be sold to earn a target income of $6,000? Consider each of the following situation independently: 4) If variable costs decrease by $1.00, calculate the new breakeven in units. 5) If the selling price is decreased to $8, calculate the new breakeven in units. 6) If the fixed costs increase by $2,000, calculate the new breakeven in units.

Selling Price per Unit: Happy boots sells hiking boots and has the following price/cost detail: 10 Total Fixed Costs: 12,000 Variable Costs per Unit: 6 Relevant Range of Production: 0 - 12,000 unit 1) Calculate the Breakeven point in units. 2) Calculate the Breakeven point in dollars. 3) How many units need to be sold to earn a target income of $6,000? Consider each of the following situation independently: 4) If variable costs decrease by $1.00, calculate the new breakeven in units. 5) If the selling price is decreased to $8, calculate the new breakeven in units. 6) If the fixed costs increase by $2,000, calculate the new breakeven in units.

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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Selling Price per Unit: Happy boots sells hiking boots and has the following price/cost detail: 10 Total Fixed Costs: 12,000 Variable Costs per Unit: 6 Relevant Range of Production: 0 - 12,000 unit 1) Calculate the Breakeven point in units. 2) Calculate the Breakeven point in dollars. 3) How many units need to be sold to earn a target income of $6,000? Consider each of the following situation independently: 4) If variable costs decrease by $1.00, calculate the new breakeven in units. 5) If the selling price is decreased to $8, calculate the new breakeven in units. 6) If the fixed costs increase by $2,000, calculate the new breakeven in units.
Transcribed Image Text:Selling Price per Unit: Happy boots sells hiking boots and has the following price/cost detail: 10 Total Fixed Costs: 12,000 Variable Costs per Unit: 6 Relevant Range of Production: 0 - 12,000 unit 1) Calculate the Breakeven point in units. 2) Calculate the Breakeven point in dollars. 3) How many units need to be sold to earn a target income of $6,000? Consider each of the following situation independently: 4) If variable costs decrease by $1.00, calculate the new breakeven in units. 5) If the selling price is decreased to $8, calculate the new breakeven in units. 6) If the fixed costs increase by $2,000, calculate the new breakeven in units.
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