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PtichkaEL [24]
3 years ago
14

A product sells for $30 per unit and has variable costs of $17.75 per unit. The fixed costs are $967,750. If the variable costs

per unit were to decrease to $15.50 per unit, fixed costs increase to $1,145,500, and the selling price does not change, break-even point in units would:
Business
1 answer:
Trava [24]3 years ago
7 0

Answer:

not change

Explanation:

BEP (Units) = Fixed cost / (Unit selling price - Unit variable cost)

BEP (Units) Before the change is : 967750/ (30-17.75) = 79000 units

BEP (Units) after the change is: 1145500/(30-15.5) = 79000 units

--> BEP (Units) does not change

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