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Greensboro, Georgia based YOLOyak, Inc. manufactures a single line of kayaks. For the year just ended, YOLOyak sold 2,000 kayaks, which generated $800,000 of sales
Greensboro, Georgia based YOLOyak, Inc. manufactures a single line of kayaks. For the year just ended, YOLOyak sold 2,000 kayaks, which generated $800,000 of sales revenue and resulted in operating income of $254,000. YOLOyak is considering a move to Greenville, South Carolina in the upcoming year. If the company relocates to Greenville, the sales price will not change. However, the variable cost percentage will decrease by 2%, and the total annual fixed manufacturing costs will increase to $120,000, which is a 25% increase over its total fixed costs in Greensboro. At what level of annual unit sales would the company be indifferent between remaining in Greensboro and relocating to Greenville
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