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Question :
Marchete Company produces a single product. They have recently received the results of a market survey that indicates that they can increase the retail price of their product by 10% share. All other costs will remain unchanged. Their most recent CVP analysis is presented below.
Current
Units sold
960
Sales Price per Unit
$130
Variable Cost per Unit
$97
Contribution Margin per Unit
$33
Fixed Costs
$28,215
Break-Even (in units)
855
Break-Even (in dollars)
$111,150
Sales
$124,800
Variable Costs
$93,120
Contribution Margin
$31,680
Net Income (loss)
$3,465
If they enact the 10% price increase, what will be their new break-even point in units and dollars? If required, round final answers to nearest whole number.
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