CompIT sells technology set-up services for cloud computing. They have 3 packages: Standard, Deluxe, and Ultimate. Assume fixed cost (rent, utilities, wages, etc.) totaled 180,000 for the prior year. Additional information for the prior year follows.
a. Using CVP analysis, determine the break-even dollars sales volume.
b. What will happen to the break-even sales volume if CompIT increases the percentage of clients only requiring the standard service package?
Options:
a. Increase
b. Decrease
c. Remain the same
d. Cannot be determined
