WeedAway sells a weed trimmer for $288.03 each, and makes the product for variable costs of 171.25 per unit. WeedAway is thinking about cutting its selling price by -$19.43. Calculate the percent profit breakeven metric for this proposed price cut. Report the correct sign for the result.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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WeedAway sells a weed trimmer for $288.03 each, and makes the product for variable costs of 171.25 per unit. WeedAway is thinking about cutting its selling price by -$19.43. Calculate the percent profit breakeven metric for this proposed price cut. Report the correct sign for the result. Report your answer as a percent. Report -25.5%, for example, as "-25.5". Rounding: tenth of a percent. 

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The break-even percentage is calculated by dividing the contribution margin from the selling price.

 

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