Currently, the unit selling price is $50, the variable cost, $34, and the total fixed costs, $108,000. A proposal is being evaluated to increase the selling price to $54.
(a) Compute the current break-even sales (units).
(b) Compute the anticipated break-even sales (units), assuming that the unit selling price is increased and all costs remain constant.

Question

Currently, the unit selling price is $50, the variable cost, $34, and the total fixed costs, $108,000. A proposal is being evaluated to increase the selling price to $54. 
(a) Compute the current break-even sales (units). 
(b) Compute the anticipated break-even sales (units), assuming that the unit selling price is increased and all costs remain constant.

Quizplus · Accepted Answer

The Answer of Currently, the unit selling price is $50, the variable cost, $34, and the total fixed costs, $108,000. A proposal is being evaluated to increase the selling price to $54. 
(a) Compute the current break-even sales (units). 
(b) Compute the anticipated break-even sales (units), assuming that the unit selling price is increased and all costs remain constant.

Currently, the Unit Selling Price Is $50, the Variable Cost