Question
Pittsboro Corporation produces and sells a single product. Data for that productare: Sales price per unit $ 540 Variable cost per unit $ 230 Fixed
Pittsboro Corporation produces and sells a single product. Data for that productare:
Sales price per unit
$ 540
Variable cost per unit
$ 230
Fixed expenses for the month
$1,200,000
Currently selling
4,000 units
Management is discussing increasing the price to $ 580 to cover an increase in fixed expenses of $88,000. Management believes they might lose2% of sales per month.
How many units per month would the company have to sell to maintain its current level of operatingincome? Round up to the nearest whole unit.
A.4,000 units
B.2,296 units
C.5,774 units
D.3,794 units
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