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In 2015, Thornton sold 3,000 units at $500 each. Variable expenses were $250 per unit, and fixed expenses were $200,000. The same selling price is
In 2015, Thornton sold 3,000 units at $500 each. Variable expenses were $250 per unit, and fixed expenses were $200,000. The same selling price is expected for 2016. Thornton is tentatively planning to invest in equipment that would increase fixed costs by 20%, while decreasing variable costs per unit by 20%. What is Thornton's break-even point in units for 2016?
800 | |
960 | |
1,000 | |
1,200 |
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