Bolton Inc. provided the following information for Quarter 1 of 20YY: Table Data Accounts Amounts Units sold 30,000 Sales per unit $50 Variable cost per unit $25 Fixed costs $280,000 The company expects variable costs per unit to decrease by $7 during the second quarter of 20YY. Determine the impact of this change on the number of break-even units during the second quarter of 20YY. Group of answer choices Break-even units would decrease by 2,450 units. Break-even units would increase by 8,750 units. Break-even units would remain the same. Break-even units would increase by 2,450 units.
Bolton Inc. provided the following information for Quarter 1 of 20YY: Table Data Accounts Amounts Units sold 30,000 Sales per unit $50 Variable cost per unit $25 Fixed costs $280,000 The company expects variable costs per unit to decrease by $7 during the second quarter of 20YY. Determine the impact of this change on the number of break-even units during the second quarter of 20YY. Group of answer choices Break-even units would decrease by 2,450 units. Break-even units would increase by 8,750 units. Break-even units would remain the same. Break-even units would increase by 2,450 units.
Principles of Cost Accounting
17th Edition
ISBN:9781305087408
Author:Edward J. Vanderbeck, Maria R. Mitchell
Publisher:Edward J. Vanderbeck, Maria R. Mitchell
Chapter10: Cost Analysis For Management Decision Making
Section: Chapter Questions
Problem 14E: A company has prepared the following statistics regarding its production and sales at different...
Related questions
Question
Bolton Inc. provided the following information for Quarter 1 of 20YY:
Table Data| Accounts | Amounts |
|---|---|
| Units sold | 30,000 |
| Sales per unit | $50 |
| Variable cost per unit | $25 |
| Fixed costs | $280,000 |
The company expects variable costs per unit to decrease by $7 during the second quarter of 20YY. Determine the impact of this change on the number of break-even units during the second quarter of 20YY.
Group of answer choices
Break-even units would decrease by 2,450 units.
Break-even units would increase by 8,750 units.
Break-even units would remain the same.
Break-even units would increase by 2,450 units.
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