esZulu sells its waterproof phone case for $93 per unit. Fixed costs total $208,000, and variable costs are $43 per unit.(a) Compute its break-even point in units.Numerator:Total fixed costsDenominator:1/Sales per unitSales per unitVariable cost per unitContribution margin per unit.Total fixed costsBreak Even UnitsBreak even units(b) Will the break-even point in units increase or decrease in response to each of the following independent changes?Break-Even inUnits WillChange1. Fixed costs increase to $228,0002. Variable costs decrease to $28 per unit3. Selling price per unit decreases to $83A

Break-even point (BEP): Breakeven is the point where total expenses are equal to total revenue. at…

Answered: Zulu sells its waterproof phone case…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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