Welcome to Westonci.ca, where finding answers to your questions is made simple by our community of experts. Discover a wealth of knowledge from professionals across various disciplines on our user-friendly Q&A platform. Our platform provides a seamless experience for finding reliable answers from a network of experienced professionals.
Sagot :
Answer:
"Decrease by 250" is the appropriate response.
Explanation:
The given values are:
Revised fixed cost,
= $150,000
Current selling price,
= $100
Current variable cost,
= $60
Current contribution will be:
= [tex]Current \ selling \ price-Current \ variable \ cost[/tex]
= [tex]100-60[/tex]
= [tex]40[/tex]
Now,
The revised BEP will be:
= [tex]\frac{Revised \ fixed \ cost}{Revised \ contribution}[/tex]
On substituting the values, we get
= [tex]\frac{150,000}{40}[/tex]
= [tex]3750 \ units[/tex]
hence,
= [tex]4000-3750[/tex]
= [tex]250[/tex]
Thus the above is the correct answer.
Thanks for stopping by. We are committed to providing the best answers for all your questions. See you again soon. Thanks for using our service. We're always here to provide accurate and up-to-date answers to all your queries. Westonci.ca is your go-to source for reliable answers. Return soon for more expert insights.