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In 2019, Justin sold 3,000 units at $500 each. Variable expenses were $250 per unit, and fixed expenses were $500,000. The same selling price is
In 2019, Justin sold 3,000 units at $500 each. Variable expenses were $250 per unit, and fixed expenses were $500,000. The same selling price is expected for 2020. Justin is tentatively planning to invest in equipment that would increase fixed costs by 40%, while decreasing variable costs per unit by 20%. What is Justins break-even point in units for 2020?
a. | 2,000 | |
b. | 1,750 | |
c. | 1,500 | |
d. | 1,250 |
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