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Disk City, Inc. is a retailer for digital video disks. The projected net income for the current year is $2,060,000 based on a sales volume
Disk City, Inc. is a retailer for digital video disks. The projected net income for the current year is $2,060,000 based on a sales volume of 280,000 video disks. Disk City has been selling the disks for $17 each. The variable costs consist of the $6 unit purchase price of the disks and a handling cost of $2 per disk. Disk Citys annual fixed costs are $460,000. Management is planning for the coming year, when it expects that the unit purchase price of the video disks will increase 20 percent. (Ignore income taxes.) Required: Calculate Disk Citys break-even point for the current year in number of video disks. (Round your final answer up to nearest whole number.)
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