Due to a technical breakthrough, the fixed costs for a firm - 1642

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  • Posted on: Tue 13 Mar, 2012
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Request Description

Due to a technical breakthrough, the fixed costs for a firm drop by 25%. Prior to this breakthrough, fixed costs were $100,000 and unit contribution margin was and remains at $5.00. The new amount of break-even units will be:

          a.   25,000.

          b.   20,000.

          c.   15,000.

          d.   10,000.

 

Solution Description

Due to a technical breakthrough, the fixed costs for a firm drop by 25%. Prior to this breakthrough, fixed costs were $100,000 and unit contribution margin w