Bates Company currently produces and sells 5,000 units of a product that has a contribution...
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Bates Company currently produces and sells 5,000 units of a product that has a contribution margin of $5 per unit. The company sells the product for a sales price of $20 per unit. Fixed costs are $20,000. The company has recently invested in new technology and expects the variable cost per unit to fall to $12 per unit. The investment is expected to increase fixed costs by $15,000. After the new investment is made, how many units must be sold to break-even and what are the sales dollars at the new breakeven point? Show your work.
BE Units: _____________________
BE Sales Dollars: _________________
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