Marchete Company produces a single product. They have recently received the results of a market...
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Accounting
Marchete Company produces a single product. They have recently received the results of a market survey that indicates that they can increase the retail price of their product by 10% without losing customers or market share. All other costs will remain unchanged. Their most recent CVP analysis is presented below.
| Current | |
| Units sold | 950 |
| Sales Price per Unit | $120 |
| Variable Cost per Unit | $97 |
| Contribution Margin per Unit | $23 |
| Fixed Costs | $19,665 |
| Break-Even (in units) | 855 |
| Break-Even (in dollars) | $102,600 |
| Sales | $114,000 |
| Variable Costs | $92,150 |
| Contribution Margin | $21,850 |
| Fixed Costs | $19,665 |
| Net Income (loss) | $2,185 |
If they enact the 10% price increase, what will be their new break-even point in units and dollars? If required, round final answers to nearest whole number.
| New Price | |
| Break-even (in units) | ________ |
| Break-even (in dollars) | ________ |
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