Bigelow Inc. sells a product for $800 per unit. The variable cost is $600 per unit, while fixed costs are $1,200,000. Determine (a) the break-even point in sales units and (b) the break-even point if the selling price were increased to $850 per unit. a.  Break-even point in sales units fill in the blank 1 units b.  Break-even point if the selling price were increased to $850 per unit fill in the blank 2 units

Question Content Area Break - Even Sales Currently, the unit selling price of a product is $270, the unit variable cost is $220, and the total fixed costs are $640,000. A proposal is being evaluated to increase the unit selling price to $300. a. Compute the current break - even sales (units). fill in the blank 1 of 1 units b. Compute the anticipated break - even sales (units), assuming that the unit selling price is increased and all costs remain constant. fill in the blank 1 of 1 units

Neptune Company has developed a small Inflatable toy that It Is anxlouUs to Introduce to Its customers. The company's Marketing Department estimates that demand for the new toy will range between 15,000 units and 35,000 units per month. The new toy will sell for $3 per unit. Enough capacity exists In the companys plant to produce 18,000 units of the toy each month. Varlable expenses to manufacture and sell one unit would be $1.00, and Incremental fixed expenses assoclated with the toy would total $22,000 per month. Neptune has also Identified an outside supplier who could produce the toy for a price of $1.75 per unit plus a fixed fee of $15,000 per month for any production volume up to 20,000 units. For a production volume between 20,001 and 40,000 units the fixed fee would Increase to a total of $30,000 per month. Required: 1 Calculate the break-even polnt In unit sales assuming that Neptune does not hire the outslde suppler 2. How much profit with Neptune earn assuming. a.It.produces…

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