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Rex Industries is a company that exclusively sells battery chargers. In 2017, Rex Industries sold 10,000 battery chargers, priced at $15.00 each. The company's expenditures
Rex Industries is a company that exclusively sells battery chargers. In 2017, Rex Industries sold 10,000 battery chargers, priced at $15.00 each. The company's expenditures (including costs associated with production, finance, sales, and distribution) in 2017 were $55,000, and the total assets were $175,000. In 2017, Rex Industries was in the 30% tax bracket. In the overall industry, a total of 46,000 battery chargers were sold in 2017 and the total revenue generated from battery chargers was $765,000. At the beginning of 2018, Rex Industries decided to increase the price of its battery chargers to $15.50 each. In estimating the company's costs for 2018, managers expect to have the fixed costs of $60,000 but with variable costs of $9.00/per unit. Based on sales so far this year, Rex Industries anticipates selling a total of 9,500 chargers in 2018. Using the information provided above, calculate the following for Rex Industries: Rex Industries is concerned as to whether selling the anticipated 9,500 chargers will be enough to help the company break even in 2018. Calculate the number of units that the company must sell in order to break even in 2018
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