What will be their new break-even point in units

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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

Fixed Costs

$28,215

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.

Reference no: EM132380810

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