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Zulu sells its waterproof phone case for $93 per unit. Fixed costs total $208,000, and variable costs are $43 per unit. (a) Compute its break-even point in units. Numerator: Total fixed costs Denominator: /Sales per unit Sales per unit Variable cost per unit Contribution margin per unit Total fixed costs (b) Will the break-even point in units increase or decrease in response to each of the following independent changes? Change 1. Fixed costs increase to $228,000 2 Variable costs decrease to $28 per unit 3. Selling price per unit decreases to $83 Break Even Units Break even units Break-Even in Units Will

Zulu sells its waterproof phone case for $93 per unit. Fixed costs total $208,000, and variable costs are $43 per unit. (a) Compute its break-even point in units. Numerator: Total fixed costs Denominator: /Sales per unit Sales per unit Variable cost per unit Contribution margin per unit Total fixed costs (b) Will the break-even point in units increase or decrease in response to each of the following independent changes? Change 1. Fixed costs increase to $228,000 2 Variable costs decrease to $28 per unit 3. Selling price per unit decreases to $83 Break Even Units Break even units Break-Even in Units Will

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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es Zulu sells its waterproof phone case for $93 per unit. Fixed costs total $208,000, and variable costs are $43 per unit. (a) Compute its break-even point in units. Numerator: Total fixed costs Denominator: 1 /Sales per unit Sales per unit Variable cost per unit Contribution margin per unit. Total fixed costs Break Even Units Break even units (b) Will the break-even point in units increase or decrease in response to each of the following independent changes? Break-Even in Units Will Change 1. Fixed costs increase to $228,000 2. Variable costs decrease to $28 per unit 3. Selling price per unit decreases to $83 A
Transcribed Image Text:es Zulu sells its waterproof phone case for $93 per unit. Fixed costs total $208,000, and variable costs are $43 per unit. (a) Compute its break-even point in units. Numerator: Total fixed costs Denominator: 1 /Sales per unit Sales per unit Variable cost per unit Contribution margin per unit. Total fixed costs Break Even Units Break even units (b) Will the break-even point in units increase or decrease in response to each of the following independent changes? Break-Even in Units Will Change 1. Fixed costs increase to $228,000 2. Variable costs decrease to $28 per unit 3. Selling price per unit decreases to $83 A
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