Compute the breakeven point in units sold

Reference no: EM131956208

Problem

Patsy smith is planning to sell her special knife for $15 per unit. She purchases units from a local distributor for $6 each. She can return any unsold units for a full refund. Fixed costs for booth rental, including lighting and security is $450.

Required

i. Compute the breakeven point in units sold.

ii. Suppose the unit purchased is $5 instead of $6 but the selling price is unchanged. Compute the new breakeven point in units sold.

Reference no: EM131956208

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