LO 3.3 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 8% without losing customers or market share. All other costs will remain unchanged. Their most recent CVP analysis is shown. If they enact the 8% price increase, what will be their new break-even point in units and dollars?
Current information:
Units Sold $950, Sales Price per Unit $125, Variable Cost per Unit $98, Contribution Marin per Unit $27, Fixed Costs $23,000, Break-Even (in units) 852, Break-Even (in dollars) $106,481, Sales $118,750, Variable Costs $93,100, Contribution Margin $25,650, Fixed Costs $23,000, Net Income $2,650.
