Question

question content area atlantic company sells a product with a break-even point of 3,976 sales units. the variable cost is $113 per unit, and fixed costs are $166,992. determine the: a. unit sales price fill in the blank 1 of 2 b. break-even point in sales units if the company desires a target profit of $73,710 fill in the blank 2 of 2 units

Answer 1

The unit sales price for Atlantic Company is $113. The break-even point in sales units for a target profit of $73,710 is undefined.

To determine the unit sales price for Atlantic Company, we need to divide the total variable cost by the break-even point.

The variable cost per unit is $113, so the unit sales price is $113.

To determine the break-even point in sales units for a target profit of $73,710, we need to add the target profit to the fixed costs and divide the sum by the unit contribution margin.

The unit contribution margin is the difference between the unit sales price and the variable cost per unit.

Using the given information, the unit contribution margin is $113 - $113 = $0.

Therefore, the break-even point in sales units for a target profit of $73,710 is undefined because the unit contribution margin is zero.