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Barnam Company currently produces and sells 5,000 units of a product that has a contribution margin of $6 per unit. The company sells the product
Barnam Company currently produces and sells 5,000 units of a product that has a contribution margin of $6 per unit. The company sells the product for a sales price of $21 per unit. Fixed costs are $24,600. The company has recently invested in new technology and expects the variable cost per unit to fall to $13 per unit. The investment is expected to increase fixed costs by $18,000. After the new investment is made, how many units must be sold to break-even? (Do not round intermediate calculations.)
3,075 units
6,075 units
5,325 units
7,100 units
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