Question

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

Answer 1

32-20=12

240000/12= 20,000 units (old)

36-20= 16

240000/16= 15,000 Units (new)