Budget data for the Bidwell Company are as follows:
-If fixed expenses increased $31,500,the break-even sales in units would be:

Question

Quizplus · Accepted Answer

Unit CM = Contribution margin F1F1F1S1F1F1F10 Unit sales
= ($1,000,000 - $700,000)F1F1F1S1F1F1F10 100,000 units
= $300,000 F1F1F1S1F1F1F10 100,000 units = $3 per unit
Unit sales to break even = Fixed expenses F1F1F1S1F1F1F10 Unit CM
= ($31,500 + $210,000)F1F1F1S1F1F1F10 $3 per unit
= $241,500 F1F1F1S1F1F1F10 $3 per unit = 80,500 units

Budget Data for the Bidwell Company Are as Follows