Respuesta :
The current break-even sales = 15,000 units and the anticipated break-even sales 11,250 units .
Fixed costs :
“Fixed costs”, also known as overhead or overhead costs, are operating costs that do not depend on the quantity of goods or services produced by a business. They are usually repeated. Interest or rent paid monthly. These costs are also typically capital costs. Fixed costs are those costs that do not change with changes in sales or production volume. This is because it is not directly related to manufacturing products or providing services.
Evaluating the break even sales :
The computation of the current break-even sales (units) is given below:
= Fixed cost ÷ (Selling price - variable cost)
= $4,500,000 ÷ ($1,500 - $1,200)
= $4,500,000 ÷ $300 units
= 15,000 units
b. The anticipated break-even sales (units) is
= Fixed cost ÷ (Selling price - variable cost)
= $4,500,000 ÷ ($1,600 - $1,200)
= $4,500,000 ÷ $400 units
= 11,250 units
Variable cost :
Variable costs are costs that fluctuate due to changes in production volume. Variable costs are costs incurred when the quantity of goods or services produced by a business changes. Variable cost is the sum of the marginal costs of all units produced. It can also be considered a normal expense.
Question is incomplete , missing part is given below :
Break-Even Sales Currently, the unit selling price of a product is $1,500, the unit variable cost is $1,200, and the total fixed costs are $4,500,000. A proposal is being evaluated to increase the unit selling price to $1,600. a. Compute the current break-even sales (units). fill in the blank 1 units b. Compute the anticipated break-even sales (units),
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