ACCT HOMEWORK

Xavier Incorporated has fixed expenses of $211,500 per year. Right now, Xavier Incorporated is selling its products for $300 per unit. Management is contemplating a 40% increase in the selling price for the next year. Variable costs are currently 40% 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). If fixed costs increase 30% next year, and the new selling price per unit goes into effect, how many units will need to be sold to breakeven? O A. 705 units O B. 509 units O C. 274,950 units O D. 917 units