Asked by
Georgia Lawton
on Nov 12, 2024
Verified
Jacob Inc. has fixed costs of $240,000, the unit selling price is $32, and the unit variable costs are $20. What are the old and new break-even sales (units) if the unit selling price increases by $4?
A) 7,500 units and 6,667 units
B) 20,000 units and 30,000 units
C) 20,000 units and 15,000 units
D) 12,000 units and 15,000 units
Break-even Sales
The amount of sales needed to cover all fixed and variable costs, resulting in zero profit.
Selling Price
The amount for which a good or service is sold to customers, determining the revenue generated from sales.
- Calculate the quantities and sales values at which profits start, considering assorted configurations of costs and prices.
- Delve into the effects of revising standing costs, evolving costs, and the tariff on commodities on the reckoning of break-even points.
Verified Answer
CI
Learning Objectives
- Calculate the quantities and sales values at which profits start, considering assorted configurations of costs and prices.
- Delve into the effects of revising standing costs, evolving costs, and the tariff on commodities on the reckoning of break-even points.