A product has a contribution margin of $2.50 per unit and a selling price of $25 per unit. Fixed costs are $20,000. Assuming new technology increases the unit contribution margin by 50 percent but increases total fixed costs by $13,750, what is the new breakeven point in units?
A. 3,333 units
B. 3,667 units
C. 13,500 units
D. 9,000 units
Answer: D
You might also like to view...
Which of the following is not a financing activity?
a. Issuing bonds for cash. b. Selling an investment in IBM stock for cash. c. Purchasing a company's own stock (treasury stock) for cash. d. Making a cash payment to repay a bank loan.
The journal entry to record the incurrence and payment of overhead costs for factory insurance requires a debit to
a. Cash and a credit to Manufacturing Overhead. b. Manufacturing Overhead and a credit to Accounts Payable. c. Manufacturing Overhead and a credit to Cash. d. Work in Process Inventory and a credit to Cash.
The legal right in the debtor's property granted by the debtor to a creditor is known as:
A) A right of redemption. B) Garnishment. C) A security interest. D) A financing statement. E) Collateral.
How much would $1, growing at 13.7% per year, be worth after 75 years?
A. $18,248.03 B. $15,206.70 C. $15,358.76 D. $13,533.96 E. $18,704.24