FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Break-Even Sales
Currently, the unit selling price of a product is $280, the unit variable cost is $230, and the total fixed costs are $560,000. A proposal is being evaluated to
increase the unit selling price to $310.
a. Compute the current break-even sales (units).
9,600 X units
b. Compute the anticipated break-even sales (units), assuming that the unit selling price is increased and all costs remain constant.
6,000 X units
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Check My Work
a. Fixed costs divided by the unit contribution margin equals break-even sales in units.
b. Repeat the calculations in (a) using anticipated amounts.
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Transcribed Image Text:CengageNOWY2 |Online teachix M(no subject) - morganmcgrew4@ X Alrn/takeAssignment/takeAssignmentMain.do?invoker3D&takeAssignmentSessionLocator3&inprogress=false Update eBook 4 Show Me How Break-Even Sales Currently, the unit selling price of a product is $280, the unit variable cost is $230, and the total fixed costs are $560,000. A proposal is being evaluated to increase the unit selling price to $310. a. Compute the current break-even sales (units). 9,600 X units b. Compute the anticipated break-even sales (units), assuming that the unit selling price is increased and all costs remain constant. 6,000 X units Feedback Check My Work a. Fixed costs divided by the unit contribution margin equals break-even sales in units. b. Repeat the calculations in (a) using anticipated amounts. Previous Next Check My Work ems 734 PM /25/2021 O a ere to search
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