For the current year ending December 31, Harp Company expects fixed costs of $188,500 and a unit variable cost of $51.50. For the coming year, a new wage contract will increase the unit variable cost to $55.50. The selling price of $70 per unit is expected to remain the same.
Compute the break-even sales (units) for the current year.
Compute the anticipated break-even sales (units) for the coming year, assuming the new wage contract is signed.
Please help, thank you.