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Last year, a company had total sales of 2,200 units at $500 each with Net Income amounted to $45,000. The total fixed costs were $450,000
Last year, a company had total sales of 2,200 units at $500 each with Net Income amounted to $45,000. The total fixed costs were $450,000 and variable costs were $275 per unit. The selling price will remain the same for this year. Yet, the company is planning to invest in new facilities that would increase fixed costs by 25%, while decreasing variable costs per unit by 20%. The companys breakeven point in units for this year is ..
Select one:
a. 2,169
b. 2,479
c. None of the answers are correct
d. 2,008
e. 2,295
f. 2,000
g. 2,200
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