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What will be the new break-even point

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Reference no: EM132608319

Question - Data concerning a company's single product is as follows:

Rs per Unit

Selling price 6.00

Variable production cost 1.20

Variable selling cost 0.40

Fixed production cost 4.00

Fixed selling cost 0.80

Budgeted production and sales for the year are 10,000 units.

Required:

(a) What is the company's break-even point, to the nearest whole unit?

(b) What will be the new break-even point, to the nearest whole unit?

Reference no: EM132608319

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