Answer:
Break-even point= 34,400 units
Explanation:
Giving the following information:
Concord Corporation sells radios for $50 per unit.
The fixed costs= $665000
The variable costs= are 60% of the selling price.
New costs:
Increase in fixed costs= 195,000
Variable costs will be 50% of the selling price.
First, we need to determine the new total fixed costs and unitary variable cost:
Fixed cost= 665,000 + 195,000= $860,000
Unitary variable cost= $25
Now, we can calculate the new break-even point in units:
Break-even point= fixed costs/ contribution margin
Break-even point= 860,000 / (50 - 25)
Break-even point= 34,400 units
