Pittsboro Corporation produces and sells a single product. Data for that productare: Sales price per unit $500
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Question:
Pittsboro Corporation produces and sells a single product. Data for that productare:
Sales price per unit
$500
Variable cost per unit
$220
Fixed expenses for the month
$1,000,000
Currently selling
4,000 units
Management is discussing increasing the price to$525 to cover an increase in fixed expenses of$80,000. 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.
Related Book For
College Accounting A Contemporary Approach
ISBN: 978-0077639730
4th edition
Authors: David Haddock, John Price, Michael Farina
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