What would be the annual breakeven point in units sold

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If sales commissions are discontinued and fixed salaries are raised by a total of $81,000, what would be the annual breakeven point in (a) units sold and (b) revenues?

A) Total fixed costs = originally reported fixed costs + the raise in fixed salaries $441,000 Break-even point in units = Fixed costs/(Selling price per unit - Variable cost per unit) $49,000 actually 49,000 units

B) Break-even point in revenues = Break-even point in units*selling price per pair $1,470,000

Reference no: EM13488930

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