Cost Accounting (15th Edition)

Published by Prentice Hall
ISBN 10: 0133428702
ISBN 13: 978-0-13342-870-4

Chapter 3 - Cost-Volume-Profit Analysis - Assignment Material - Exercises - Page 96: 3-27(3)b

Answer

For the new customer mix of 80% and upgrade customer mix of 20% New Breakeven Point in Units = $16,500,000 / $120 New Breakeven Point in Units = 137,500 units

Work Step by Step

New Contribution Margin per Unit = (130 * 0.80) + (80 * 0.20) New Contribution Margin per Unit = 104 + 16 New Contribution Margin per Unit = 120 New Breakeven Point in Units = Fixed Costs / New Contribution Margin per Unit
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