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agasfer [191]
3 years ago
9

Zeke Company sells a single product. The selling price per unit is $32 and unit variable cost is $24. Fixed costs for the year a

re $100,200. What if selling price goes up by 0.15%, variable costs go up by 0.15% and fixed costs go up by 0.16%? What is the new breakeven point in units?
Business
1 answer:
soldi70 [24.7K]3 years ago
8 0

Answer:

Break-even point in units= 12,562 units

Explanation:

Giving the following information:

Selling price= 32*1.0015= 32.048

Unitary variable cost= 24*1.0015= 24.036

Fixed costs= 100,200*1.0016= 100,360.32

<u>To calculate the break-even point in units, we need to use the following formula:</u>

<u></u>

Break-even point in units= fixed costs/ contribution margin per unit

Break-even point in units= 100,360.32/(32.048 - 24.036)

Break-even point in units= 12,562 units

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