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What is the new break-even point

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Reference no: EM132635404

Question - One product line of Anita's Accessories (AA) is the assembly, testing, and marketing of a USB thumb drive - The Speedster.

The parts list for each unit is:

1 standard USB plug

1 USB mass storage controller

1 NAND flash memory chip

1 crystal oscillator

1 cover

In the table are the current variable costs per Speedster. The fixed costs associated with the manufacture and sales of this product are $480,000 per year and Anita's uses a marginal tax-rate of 20% for planning purposes.

Speedster

Sales Price (per unit) $25.00

Material cost (per unit) $6.00

Direct labor (per unit) $4.00

Variable OH (per unit) $7.00

As a result of import tariffs on electronic components sourced outside the U.S., variable material costs are expected to increase by 7.5% and fixed manufacturing costs will increase by $25,000 per year. What is the new break-even point in terms of the number of Speedster's sold? You may ignore any changes from the original data given in other questions.

Reference no: EM132635404

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