Question: The Bozo Company has decided to do a breakeven analysis on their production process to determine if they could reduce their breakeven point. The following criteria apply:

Sales price of units $75

Variable cost per unit 25

Total Fixed costs $400,000

1. What is the current breakeven cost?
2. What would happen to the breakeven point if we lower our fixed costs by $100,000 but increased our variable cost by $5 per unit?
3. What would happen to the breakeven point if we increased our fixed cost by $200,000 and decreased our variable cost by $11 per unit?
4. Which of the above cost structures would you use if you were certain to have 40,000 units sold?

Price: $2.99

Solution: The downloadable solution consists of 2 pages
Deliverable: Word Document