Question
BabyMart, Inc. manufactures baby cribs and currently has fixed costs of $50,000 and a sales price per unit of $315. BabyMart is expecting the variable
BabyMart, Inc. manufactures baby cribs and currently has fixed costs of $50,000 and a sales price per unit of $315. BabyMart is expecting the variable costs of its baby cribs to increase from $90 to $115 due to an increase in prices by one of the companys major raw materials suppliers. BabyMart plans to cut fixed costs by $5,000 but is going to hold the line on the selling price of its cribs. BabyMart currently has monthly net income of $40,000 on sales of 400 cribs. To maintain the same level of income, BabyMart will need to sell an additional ________ units per month.
10? 15? 25? or 35?
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