Michael vick has written a self improvement book that has

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Reference no: EM13581412

Michael Vick has written a self improvement book that has the following cost characteristics:

  • Selling Price $16.00 per book
  • Variable cost per unit:
  • Production $4.00
  • Selling & administrative 2.00
  • Fixed costs:
  • Production $88,000 per year

Assume the variable production cost and the price were both cut by $2.00 per unit. Which of the following would change?

  • Breakeven point in units
  • Contribution margin ratio
  • Total fixed costs
  • Contribution margin per unit

Reference no: EM13581412

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