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Elden [556K]
2 years ago
15

Break-Even Point Freese Inc. sells a product for 650 per unit. The variable cost is 455 per unit, while fixed costs are 4,290,00

0. Determine (a) the break-even point in sales units and (b) the break-even point if the selling price were increased to $655 per unit. a. Break-even point in sales unitsfill in the blank 1 units b. Break-even point if the selling price were increased to $655 per unit
Business
1 answer:
andreyandreev [35.5K]2 years ago
6 0

Answer:

Results are below.

Explanation:

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

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

Break-even point in units= 4,290,000 / (650 - 455)

Break-even point in units= 22,000

<u />

<u>Now, if the selling price is $655, the break-even point in dollars is:</u>

Break-even point (dollars)= fixed costs/ contribution margin ratio

Break-even point (dollars)= 4,290,000 / [(655 - 455) / 655]

Break-even point (dollars)= $14,049,750

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2 years ago
One difference between a monopoly and a competitive firm is that A. a monopoly faces a downward sloping demand curve. B. a monop
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3 years ago
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.... She attempts to influence her clients to switch to printing on the new materials. This is known as a proactive type of approach

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6 0
2 years ago
Why does a​ $1 increase in government purchases lead to more than a​ $1 increase in income and​ spending? A. Through the governm
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