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; assumuing 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; assumuing 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; assumuing the new wage contract is signed.

For the Current Year Ending January 31, Ringo Company Expects