Gall Manufacturing sells a product for $50 per unit.The fixed costs are $735,000 and the variable costs are 60% of the selling price.As a result of new automated equipment, it is anticipated that fixed costs will increase by $175,000 and variable costs will be 50% of the selling price.The new break-even point in units is:
A)36,750.
B)36,400.
C)36,050.
D)29,400.

Question

Quizplus · Accepted Answer

The Answer of Gall Manufacturing sells a product for $50 per unit.The fixed costs are $735,000 and the variable costs are 60% of the selling price.As a result of new automated equipment, it is anticipated that fixed costs will increase by $175,000 and variable costs will be 50% of the selling price.The new break-even point in units is:
A)36,750.
B)36,400.
C)36,050.
D)29,400.

Gall Manufacturing Sells a Product for $50 Per Unit