For the current year ending January 31,Ringo Company expects fixed costs of $178,500 and a unit variable cost of $41.50.For the coming year,a new wage contract will increase the unit variable cost to $45.The selling price of $50 per unit is expected to remain the same.
(a) Compute the break-even sales (in units) for the current year.
(b) Compute the anticipated break-even sales (in units) for the coming year, assuming the new wage contract is signed.

Question

For the current year ending January 31,Ringo Company expects fixed costs of $178,500 and a unit variable cost of $41.50.For the coming year,a new wage contract will increase the unit variable cost to $45.The selling price of $50 per unit is expected to remain the same.
(a)	Compute the break-even sales (in units) for the current year.
(b)	Compute the anticipated break-even sales (in units) for the coming year, assuming the new wage contract is signed.

Quizplus · Accepted Answer

The Answer of For the current year ending January 31,Ringo Company expects fixed costs of $178,500 and a unit variable cost of $41.50.For the coming year,a new wage contract will increase the unit variable cost to $45.The selling price of $50 per unit is expected to remain the same.
(a)	Compute the break-even sales (in units) for the current year.
(b)	Compute the anticipated break-even sales (in units) for the coming year, assuming the new wage contract is signed.

For the Current Year Ending January 31,Ringo Company Expects Fixed