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MDSE Retail sells a product for $40 per unit. The purchase price is $21 per unit and MDSE pays $2 for shipping each unit sold.
MDSE Retail sells a product for $40 per unit. The purchase price is $21 per unit and MDSE pays $2 for shipping each unit sold. Finally, MDSE has fixed costs (such as sales building depreciation and salaries) that total $160,000 per year. Currently, MDSE is selling 10,000 units annually.
MDSE wants to know how many units it must sell to make $40,000 in operating income.
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