Question
Kumar produces large decorative tiles used in home decor. The tiles sell for $ 740 and the fixed monthly operating costs are as follows: Rent
Kumar produces large decorative tiles used in home decor. The tiles sell for $ 740 and the fixed monthly operating costs are as follows: Rent and utilities $ 800 Management salaries 2 comma 500 Other expenses 520 Kumar's accountant told him about contribution margin ratios and he understood clearly that for every dollar of sales, $ 0.60 went to cover his fixed costs, and that anything past that point was pure profit. Kumar's is planning to increase the selling price to $ 840 . What impact will the increase in selling price have on the breakeven point in units?
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