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Compute the break-even point in both sales dollars

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Problem 1: Compute the break-even point in both sales dollars and units under each of the independent assumptions. Comment on why the break-even points are different.

a. The costs and selling price are as just given.

b. Fixed costs are increased to $75,000.

c. Selling price is increased by 10%. (Fixed costs are $60,000.)

d. Variable cost is increased to $4.50 per unit. (Fixed costs are $60,000 and selling price is $9.)

Reference no: EM132700604

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