Just to clarify so we have any other information for part 2 where we need to compute breakeven point.
I have already done so the breakeven point is 84,000
I'm sorry that is the not the break even point for part 2
it it the break even point for the information given at the beggining
The reason I was asking was if we are increasing Fixed cost as well as variable cost the breakeven point would increase hence it won't be advisable for company to increase production.
Please recheck if both fixed cost as well as variable cost is increasing or if its given one of them is decreasing it would make more sense
i did it says they are both increasing
its ok then I will solve it as given both increasing
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