Beasley Company Currently Sells Its Products for $35 Per Unit

question 132

Multiple Choice

Beasley Company currently sells its products for $35 per unit.Management is contemplating a 20% increase in the selling price for the next year.Variable costs are currently 50% of sales revenue and are not expected to change in dollar amount on a per unit basis next year (the company will pay the same amount for variable costs next year) .Fixed expenses are $79,625 per year.
What is the breakeven point in units at the anticipated selling price per unit next year?

• A)1,338 units
• B)3,250 units
• C)3,520 units
• D)7,583 units

---

Definitions:

Generic Strategy

A fundamental strategy a company can adopt to achieve a competitive advantage, typically categorized as cost leadership, differentiation, or focus.

Competitive Pricing

A pricing strategy where a company sets its product prices based on the prices of competitors, aiming to offer more value or lower costs.

Differentiation

A marketing strategy that involves making a product or service stand out from competitors by emphasizing its unique features or benefits.

Conjoint Analysis

A statistical marketing research technique used to determine how people value different features that make up an individual product or service.