The Gas Division of Power-U-Up Plans to Introduce a New

Essay

The gas division of Power-U-Up plans to introduce a new gas delivery system based on the following accounting information.
Fixed costs per period are $4 236; variable cost per unit is $168;
selling price per unit is $211; and capacity per period is 450 units.
a)Draw a detailed break-even chart
b)Compute the break-even point
(i)in units;
(ii)as a percent of capacity;
(iii)in dollars.
c)Determine the break-even point as a percent of capacity
(i)if fixed costs are reduced to $3 788;
(ii)if fixed costs are increases to $5 577 and variable costs are reduced to 75% of the selling price;
(iii)if the selling price is reduced to $191.