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For the Current Year Ending January 31, Harp Company Expects

Question 239

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For the current year ending January 31, Harp Company expects fixed costs of $188,500 and a unit variable cost of $51.50. For the coming year, a new wage contract will increase the unit variable cost to $55.50. The selling price of $70.00 per unit is expected to remain the same.
a.Compute the break-even sales (units) for the current year. Round your answer to the nearest whole number.
b.Compute the anticipated break-even sales (units) for the coming year, assuming the new wage contract is signed.

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a.$188,500 ÷ ($70.00...

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