Question
12. Last year, Kendy Company sold 40,000 units. The contribution margin per unit was $3, and the total fixed expenses were $30,000 for the
12. Last year, Kendy Company sold 40,000 units. The contribution margin per unit was $3, and the total fixed expenses were $30,000 for the year. During this year, the fixed expenses are expected to increase to $36,000, but the contribution margin per unit will remain unchanged. How many units will the company need to sell in order to earn the same net operating income as the one earned last year?
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Financial Accounting Tools for business decision making
Authors: Paul D. Kimmel, Jerry J. Weygandt, Donald E. Kieso
6th Edition
978-1119191674, 047053477X, 111919167X, 978-0470534779
