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In 2022, Coronado sold 1000 units at $500 each and earned net income of $40000. Unit variable cost was $300 and fixed expenses totaled $160000.
In 2022, Coronado sold 1000 units at $500 each and earned net income of $40000. Unit variable cost was $300 and fixed expenses totaled $160000. The same selling price is expected for 2023. Coronado's unit variable cost will rise by 10% in 2023 due to increasing material costs so they are tentatively planning to cut fixed costs by $10000. If the company is successful in cutting fixed costs by $10000, how many units must Coronado sell in 2023 to maintain the same income level as 2022
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