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How many units must be sold to break-even

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Reference no: EM13913318

1. James Manufacturing company provides the following information about its cost structure:

Selling Price $20.00 per book
Variable cost per unit: $6.00
Fixed costs: 112000 per year

How many units must be sold to break-even?

2. Assume the variable cost and the price were both cut by $4.00 per unit. Which of the following would change?

a. Contribution margin per unit
b. Breakeven point in units
c. Total fixed costs
d. Contribution margin ratio

Reference no: EM13913318

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