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v2.cengagenow.com neakers eans To Does Diet.. Blackboar Cengage Cengag Sign in . C Ramirez C 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 s1,600. a. Compute the current break-even sales (units) units b. Compute the anticipated break-even sales (units), assuming that the unit selling price is increased and all costs remain constant. units Previous Next Check My Work

Explanation / Answer

a. Break-even sales (units) = $4,500,000 / ($1,500 - $1,200) = 15,000 units

b. Break-even sales (units) = $4,500,000 / ($1,600 - $1,200) = 11,250 units

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