Answer:
Results are below.
Step-by-step explanation:
Giving the following information:
Selling price= $114
Unitary variable cost= $63
Fixed costs= $741,285
To calculate the break-even point in units, we need to use the following formula:
Break-even point in units= fixed costs/ contribution margin per unit
Break-even point in units= 741,285 / (114 - 63)
Break-even point in units= 14,535
Now, the break-even point if the selling price is $120:
Break-even point in units= 741,285 / (120 - 63)
Break-even point in units= 13,005