HW10_11_12sol

HW10_11_12sol - = 41 units increase E. Should the changes...

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ACG 2071 Problem 10 A. [$21 - $6] / $21 = 71.43% B Fixed costs = $3.20 x 10,400 = $33,280 21X - 6X - 33,280 = 0 x = 2,,219 units = BEP in units BEP in sales = 2,219 units x $21 = $46,599 C CM ratio * increase in sales = 71.42857% x $1,000 = $714 21X - [6*80%]X - [33,280*110%] = 0 X = 2,2,59.76 2,260 units Units increase from 2,219 to 2,260
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Unformatted text preview: = 41 units increase E. Should the changes in part D be made? No. The BEP increases, which means the company must sell 41 more units to break even. D. If variable costs decrease by 20%, and fixed costs increase by 10%, what happens to the break-even level of units per month ?...
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