Cornelius Manufacturing management has budgeted the following amounts for its next fiscal year: $$\begin{array} { | l | r | }
\hline \text { Total fixed expenses } & \$ 600,000 \
\hline \text { Sale price per unit } & \$ 50 \
\hline \text { Variable expenses per unit } & \$ 20 \
\hline
\end{array}$$ If Cornelius Manufacturing can reduce fixed expenses by $50,000,by how much can variable expenses per unit increase and still allow the company to maintain the original breakeven sales in units?

Question

Cornelius Manufacturing management has budgeted the following amounts for its next fiscal year: $$\begin{array} { | l | r | } 
\hline \text { Total fixed expenses } & \$ 600,000 \
\hline \text { Sale price per unit } & \$ 50 \
\hline \text { Variable expenses per unit } & \$ 20 \
\hline
\end{array}$$ If Cornelius Manufacturing can reduce fixed expenses by $50,000,by how much can variable expenses per unit increase and still allow the company to maintain the original breakeven sales in units?

Quizplus · Accepted Answer

The Answer of  Cornelius Manufacturing management has budgeted the following amounts for its next fiscal year: $$\begin{array} { | l | r | } 
\hline \text { Total fixed expenses } & \$ 600,000 \
\hline \text { Sale price per unit } & \$ 50 \
\hline \text { Variable expenses per unit } & \$ 20 \
\hline
\end{array}$$ If Cornelius Manufacturing can reduce fixed expenses by $50,000,by how much can variable expenses per unit increase and still allow the company to maintain the original breakeven sales in units?

Cornelius Manufacturing Management Has Budgeted the Following Amounts for Its