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Alpine Thrills Ski Company recently expanded its manufacturing capacity. The firm will now be able...

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Accounting

Alpine Thrills Ski Company recently expanded its manufacturing capacity. The firm will now be able to produce up to 29,000 pairs of cross-country skis of either the mountaineering model or the touring model. The sales department assures management that it can sell between 23,000 and 27,000 units of either product this year. Because the models are very similar, the company will produce only one of the two models. The following information was compiled by the accounting department.

Model
Mountaineering Touring
Selling price per unit $ 146.00 $ 134.00
Variable costs per unit 86.30 86.30

Fixed costs will total $610,400 if the mountaineering model is produced but will be only $517,200 if the touring model is produced. Alpine Thrills Ski Company is subject to a 35 percent income tax rate.

4. Suppose the variable cost per unit of touring skis decreases by 20 percent, and the total fixed cost of touring skis increases by 20 percent. Compute the new break-even point. (Do not round intermediate calculations. Round your final answer up to nearest whole unit.)

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