Reference no: EM131538984

Question: Refer to the information from QS. How will the break-even point in units change in response to each of the following independent changes in selling price per unit, variable cost per unit, or total fixed costs? Use I for increase and D for decrease. (It is not necessary to compute new break-even points.)

Change                                           Break-even in Units Will

1. Total fixed cost to $520,000 . . . . . . . . __________

2. Variable cost to $134 per unit . . . . . . . __________

3. Selling price per unit to $290 . . . . . . . __________

4. Variable cost to $100 per unit . . . . . . . __________

5. Total fixed cost to $544,000 . . . . . . . . __________

6. Selling price per unit to $320 . . . . . . . __________

QS: MCU Phone Company sells its cordless phone for $300 per unit. Fixed costs total $540,000, and variable costs are $120 per unit. Determine the

(1) contribution margin per unit and

(2) break-even point in units.