Cost Accounting (15th Edition)

by Horngren, Charles T.; Datar, Srikant M.; Rajan, Madhav V.

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)a

Answer

For the new customer mix of 40% and upgrade customer mix of 60% New Breakeven Point in Units = 16,500,000 / 100 New Breakeven Point in Units = 165,000 units

Work Step by Step

New Contribution Margin per Unit = (130 * 0.40) + (80 * 0.60) New Contribution Margin per Unit = 52 + 48 New Contribution Margin per Unit = 100 New Breakeven Point in Units = Fixed Costs / New Contribution Margin per Unit

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