For the Current Year Ending January 31, Harp Company Expects

question 143

Essay

For the current year ending January 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 $70.00 per unit is expected to remain the same.
a.Compute the break-even sales (units) for the current year. Round your answer to the nearest whole number.
b.Compute the anticipated break-even sales (units) for the coming year, assuming the new wage contract is signed.

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Definitions:

Unions

Are organizations of workers that seek to defend and promote their members’ interests.

Communism

A political and economic ideology advocating for a classless society in which all property is publicly owned and each person works and is paid according to their abilities and needs.

Classless Society

An ideal society in which there is no division or class stratification among its members, implying equality in terms of status, wealth, and power.

Labour Force

The total number of people currently employed or in search of employment within a particular country or economic region.