Question

urrently, the unit selling price of a product is $260, the unit variable cost is $210, and the total fixed costs are $640,000. A proposal is being evaluated to increase the unit selling price to $290. a. Compute the current break-even sales (units).

Answer 1

Answer:Current Break even sales units=12,800 units

Step-by-step explanation:

Current Break even sales units = Fixed cost /Contribution margin per unit

But Contribution margin per unit = Selling price -variable cost

= $260- $210

=$50

Break even sales units =$640,000/$50

=12,800 units