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Compute the break-even points

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Shawn Pen & Pencil Sets Inc. has fixed costs of $536,000. Its product currently sells for $24 per unit and has variable costs of $10.60 per unit. Mr. Bic, the head of manufacturing, proposes to buy new equipment that will cost $500,000 and drive up fixed costs to $653,250. Although the price will remain at $24 per unit, the increased automation will reduce costs per unit to $7.25.

a. Compute the following break-even points.

Reference no: EM133253579

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