If the contribution margin on a new product line is $15, fixed costs are $165,00

Question

If the contribution margin on a new product line is $15, fixed costs are $165,000, and the total market for the product is 22,000 units, then the breakeven analysis would recommend that the company a. abandon the new product line. b. increase fixed costs (such as advertising) to lower the breakeven units. c. adopt the new product line. d. decrease the sales price per unit. If the contribution margin on a new product line is $15, fixed costs are $165,000, and the total market for the product is 22,000 units, then the breakeven analysis would recommend that the company a. abandon the new product line. b. increase fixed costs (such as advertising) to lower the breakeven units. c. adopt the new product line. d. decrease the sales price per unit.

Explanation / Answer

breakeven point in sales units = (165000)/(15) =11000 units breakeven point in sales units

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