Working with CVP Break-even Analysis 1. Given the followingdata, please evaluate the effect on Break-even point in units ifsales price was to increase or decrease by 15% without impactingvariable or fixed costs. Price: $100 Variable Cost: $70 Fixed Cost:$24,000 Monthly BE in units 800 Please describe your results andhow this increase or decrease impacted BE point in units. Forexample, a 15% increase in sales price represents an approximate33% decrease in BE point in units or a drop of approximately 267units. Or that we have to sell less to breakeven.
Working with CVP Break-even Analysis 1. Given the followingdata, please evaluate the effect on Break-even point in units ifsales price was to increase or decrease by 15% without impactingvariable or fixed costs. Price: $100 Variable Cost: $70 Fixed Cost:$24,000 Monthly BE in units 800 Please describe your results andhow this increase or decrease impacted BE point in units. Forexample, a 15% increase in sales price represents an approximate33% decrease in BE point in units or a drop of approximately 267units. Or that we have to sell less to breakeven.
Related questions
White machine shop fabricates polished steel casings. Theycurrently sell 20,000 casings at a selling price of $45. They havethe following cost structure:
Variable costs per unit | $30 |
Fixed costs | $150,000 |
Required (each requirement is independent):
What is the breakeven point in units?
Break-even point in units: |
Suppose that if they decrease their price to $38, they couldincrease sales to 30,000 units. What would the new profit be ifthey decrease their price to $38?
Profit if price is $38: |
What is the minimum price that White would be willing to chargein order to achieve an increase in sales to 30,000 units (round tothe nearest cent)?
Minimum price for increase to 30,000 units: |
Suppose that White can purchase a machine that would increasefixed costs to $300,000 and decrease unit variable costs to $20 perunit.At what level of production and sales would White beindifferent between the old machine and the new machine?
Level of production and sales (in units): |
