EXERCISE 6-17 (30 MINUTES)

30,000 units × $58 per unit = $1,740,000 to break even.

This break-even point is different from the break-even point in part (2)

because of the change in selling price. With the change in selling price

the unit contribution margin drops from $30 to $18, resulting in an in-

crease in the break-even point.

Problem 6-23 (30 minutes)