Take a Test C O openvellumSecure | h ttps//www.mathxl.com/Student/PlayerTest.asp

ID: 2392425 • Letter: T

Question

Take a Test C O openvellumSecure | h ttps//www.mathxl.com/Student/PlayerTest.aspx?testid 1816086508centerwin yes ?1? ACCT 202 -Routh, Summer 2018 (online) Mitchell Mundy & 6/25/18 4:57 PM Lab Accountir Test Exam (Module 3 - ch. 6, 7) Time Limit: 02:00.00 Submit Test This Question: 4 pts This Test: 43 pts 43s 34m 49s currently 40% of sales revenue and are not expected to change next year Fixed expenses are S 190,000 per year f fixed costs were to decrease 20% during the current year and the new selling price goes into effect how many units will need to be sold to breakeven? O A. 1,027 units OB, 362 units O C. 228,000 units OD, 457 units Main Menu 8 3m 26s Modules 3m 26s 57 PM

Explanation / Answer

Break Even Point (in units)=Total Fixed Cost/Contribution

Contribution=Selling Price-Variable Cost

Selling Price in Current Year=370+(370*30/100)=481

Variable Cost in current year is same as previous year.

that is 370*40/100=148

Therefore Contribution=481-148=$ 333

Fixed Cost=190000-(190000*20/100)=$ 152000

Break Even Point=152000/333=457units(Option D)