Lower the firms break-even point

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Reference no: EM13154901

Oak recently sold 70,000 units generating sales revenues of $4,900,000 the company variable cost per unit and total fixed cost amounted to $20 and $ 2,8000,000 respectively .

case 1 managment wants to lower the firm's break-even point to 52,000 units all other thing being equal. what must happen to fixed costs to archieve this objective?

case 2 the company anticipates a $ 2 hike in the variable cost per unit all other thing being equal if the selling price remains constant what must happen to the firm's total fixed costs?

Reference no: EM13154901

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