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Byrnes Company currently produces and sells 4,000 units of a product that has a contribution margin of $6 per unit. The company sells the product
Byrnes Company currently produces and sells 4,000 units of a product that has a contribution margin of $6 per unit. The company sells the product for a sales price of $20 per unit. Fixed costs are $18,000. The company has recently invested in new technology and expects the variable cost per unit to fall to $8 per unit. The investment is expected to increase fixed costs by $15,000. Before the new investment is made, how many units would have to be sold to breakeven? The answer is 3,000 units. How do you get this answer?
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