Jacob Inc

Accounting Oct 05, 2020

Jacob Inc. has foed costs of $240,000, the unit selling price is $32, and the unit variable costs are $20. The old and new break-even sales (units), respectively, the unit selling price increases by $4 is 7,500 units and 6,667 units n. 12,000 units and 15,000 units 20,000 units and 30,000 units d. 20,000 units and 15,000 units

Expert Solution

Break Even Sales in units = Fixed Cost / (Selling Price - Variable Cost)

Old = 240000 / (32-20) = 20000

New = 240000 / (36-20) = 15000

The answer is option D = 20000 units and 15000 units

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