Compute break-even point at the operating profit level

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Reference no: EM13765070

Compute Break-Even Point at the operating profit level:

Q = Fixed Costs / Contribution Margin per Unit

Ensco Lighting Company has fixed costs of $100,000, sells its units for $28 and has variable costs of $15.50 per unit.

Compute the breakeven point.

Ms. Watts comes up with a new plan to cut fixed costs to $75,000. However, more labor will now be required, which will increase variable costs per unit to $17. The sales price will remain at $28. What is the new breakeven point was the new plan a success.

Reference no: EM13765070

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