Discover a world of knowledge at Westonci.ca, where experts and enthusiasts come together to answer your questions. Connect with a community of professionals ready to provide precise solutions to your questions quickly and accurately. Connect with a community of professionals ready to help you find accurate solutions to your questions quickly and efficiently.
Sagot :
Answer:
it would increase by 300 units
Explanation:
Breakeven quantity are the number of units produced and sold at which net income is zero
Breakeven quantity = fixed cost / price – variable cost per unit
Fixed costs are costs that do not vary with output. e,g, rent, mortgage payments
If production is zero or if production is a million, Mortgage payments do not change - it remains the same no matter the level of output.
Hourly wage costs and payments for production inputs are variable costs
Variable costs are costs that vary with production
If a producer decides not to produce any output, there would be no need to hire labour and thus no need to pay hourly wages.
Initial breakeven = 1000 / (10 - 5) = 200
New breakeven = 1000 /(10 - 8) = 500
Change in breakeven = 500 - 200 = 300
Answer:
Change in break-even point = 300 units
Explanation:
Given:
Sales price = $10 per unit
Variable cost = $5 per unit
Fixed cost = $1,000
Find;
Change in break-even point in units when variable cost increased to $8 per unit
Computation:
Break-even point = Fixed cost / [sales - VC]
Actual break-even point = 1,000 / [10 - 5]
Actual break-even point = 200 units
New break-even point = 1,000 / [10 - 8]
New break-even point = 500 units
Change in break-even point = 500 - 200
Change in break-even point = 300 units
We hope our answers were useful. Return anytime for more information and answers to any other questions you have. Thank you for your visit. We're dedicated to helping you find the information you need, whenever you need it. Find reliable answers at Westonci.ca. Visit us again for the latest updates and expert advice.
