00:01
Okay, so the question says that zec company sells a single product, and then the product, the selling price is 32, and then the variable cost is 24, and the face cost at 100, and then 200.
00:14
So what if there is an increase in selling price by 15%, increasing variable costs by 11%, and then the increase in face cost by 13 %? what would be the break -even point in unit? so to the answer, the data from the question we have our selling price to be 32, which will increase by 13%.
00:39
We have our variable cost of 24, which will increase by 11%.
00:44
Then we have our fixed cost 100 plus 200, which will increase by 13%.
00:52
So calculating break -even, we need to now find the new selling price, the new variable cost and the new fish cost.
01:02
So the new selling price will be 32 times the percent, the increase in percent, which is 0 .1, 3, giving us 4 .16 plus the old price of 32, given us 36 .16, which is the new selling price.
01:19
So we do see for the variable cost.
01:22
We have 24 times 0 .11, giving us 2 .64 plus 2 .6, which is the new selling price.
01:27
So we do same for the variable cost...