Answer:
Break even units = 858 adapters.
Explanation:
Revised selling price = $24 per adapter
Variable cost = $17 per adapter
Contribution per adapter = $24 - $17 = $7
Provided fixed cost = $6,000
Break even point in units = [tex]\frac{Fixed Cost}{Contribution per unit}[/tex]
= $6,000/$7 = 857.14
Since the unit cannot be rounded off downwards, we have
Final Answer
Break even units = 858 adapters.