Answer:
1. Break even points in units will be = 2,700 units
2. Break-even point in dollar sales = $56,700
3. In case fixed expense increase by $600 then Break even point in unit sales = 2,900 units
Explanation:
Break even point = ![\frac{Fixed Cost}{Contribution per unit}](https://tex.z-dn.net/?f=%5Cfrac%7BFixed%20Cost%7D%7BContribution%20per%20unit%7D)
Fixed Cost = $8,100
Contribution per unit = Sale Price - Variable Cost = $21 - $18 = $3
1. Break even points in units will be
= ![\frac{8,100}{3} = 2,700 units.](https://tex.z-dn.net/?f=%5Cfrac%7B8%2C100%7D%7B3%7D%20%3D%202%2C700%20units%3C%2Fstrong%3E.)
2. Break-even point in dollar sales
= Break even point in units X Sale price per unit
= 2,700 units X $21 = $56,700
3. In case fixed expense increase by $600 then Break even point in unit sales
=
= 2,900 units
Final Answer
1. Break even points in units will be = 2,700 units
2. Break-even point in dollar sales = $56,700
3. In case fixed expense increase by $600 then Break even point in unit sales = 2,900 units