Westview Electronics produces speakers with a selling price of $120 per unit. The variable cost per unit is $45, and total fixed costs are $187,500. If fixed costs increase by $25,000, how many additional units must be sold to break even?

EBK CONTEMPORARY FINANCIAL MANAGEMENT
14th Edition
ISBN:9781337514835
Author:MOYER
Publisher:MOYER
Chapter14: Capital Structure Management In Practice
Section14.A: Breakeven Analysis
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Westview Electronics produces speakers with a selling price of $120 per unit. The variable
cost per unit is $45, and total fixed costs are $187,500. If fixed costs increase by $25,000, how
many additional units must be sold to break even?
Transcribed Image Text:Westview Electronics produces speakers with a selling price of $120 per unit. The variable cost per unit is $45, and total fixed costs are $187,500. If fixed costs increase by $25,000, how many additional units must be sold to break even?
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