Scott Incorporated has been in business for several months.  Because of increased competition in the region for part adapters, the managers at Scott Incorporated is considering cutting sales price from $26 per adapter to $22 per adapter. New sales price - $22 Variable price per adapter - $17 New contribution margin per adapter - $5 If the variable expenses remain at $17 per adapter and the fixed expenses remain at $7,000, how many adapters will the managers need to sell to break even?  Compute the breakeven sales in units.

Principles of Cost Accounting
17th Edition
ISBN:9781305087408
Author:Edward J. Vanderbeck, Maria R. Mitchell
Publisher:Edward J. Vanderbeck, Maria R. Mitchell
Chapter10: Cost Analysis For Management Decision Making
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Scott Incorporated has been in business for several months.  Because of increased competition in the region for part adapters, the managers at Scott Incorporated is considering cutting sales price from $26 per adapter to $22 per adapter.

New sales price - $22

Variable price per adapter - $17

New contribution margin per adapter - $5

If the variable expenses remain at $17 per adapter and the fixed expenses remain at $7,000, how many adapters will the managers need to sell to break even?  Compute the breakeven sales in units.

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