Question

Management believes it can increase the selling price in 2020 with no change in unit sales. Variable costs per unit and fixed costs would remain the same. What would the selling price have to be in 2020 in order for X Company's 2020 profit to be $771,525

Answer 1

Break-even point= (fixed costs + 771,525)/ ( selling price - unitary variable cost)

Step-by-step explanation:

Giving the following information:

Management believes it can increase the selling price in 2020 with no change in unit sales. Variable costs per unit and fixed costs would remain the same. Profit= $771,525.

We don't have enough information to calculate the break-even point. We need fixed costs, break-even units and variable costs. But, we can provide with the formula to calculate the selling price necessary:

Break-even point= (fixed costs + 771,525)/ ( selling price - unitary variable cost)