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The document calculates the new break-even quantity for SUN skis after a 10% decrease in variable costs per unit and a 10% increase in fixed costs. The increased fixed cost is €522,720, and the new unit contribution margin is €48.72. Consequently, the break-even quantity is determined to be 10,730 units.

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15 views

Assignments_BEA_-_Solution_corrected_slide (1)

The document calculates the new break-even quantity for SUN skis after a 10% decrease in variable costs per unit and a 10% increase in fixed costs. The increased fixed cost is €522,720, and the new unit contribution margin is €48.72. Consequently, the break-even quantity is determined to be 10,730 units.

Uploaded by

david.ellis1245
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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Assignment 2.

3 – Solution
Suppose that the variable costs per unit of SUN skis decrease by 10%
and the fixed costs of SUN skis increase by 10%. Calculate the new
break even quantity.

Increased fixed cost: 475,200 * 1.10 = 522,720 €


New unit contribution margin: 120 – (79.20 * 0.9) = 48.72 €
xො = 522,720/48.72 = 10,729.06 → 10,730 units

© Prof. André Hoppe Management Accounting 1

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