Question
The 11670-TH company sells its product for $25 per unit. The variable expenses are $15 per unit. The 11670-TH company sold 54,000 units last
The 11670-TH company sells its product for $25 per unit. The variable expenses are $15 per unit. The 11670-TH company sold 54,000 units last year and reported the following results: Sales (54,000 balls) Variable expenses Contribution margin Fixed expenses $1,350,000 810,000 540,000 372,000 Net operating income $ 168,000 The 11670-TH company considers reducing variable expenses per unit by 40% by investing in new equipment that would double the company's fixed expenses. If the new equipment is purchased, how many units will the 11670-TH company have to sell next year to earn the same net operating income, $168,000, as last year? (Round your answer, if necessary, to the closest number below.) Multiple Choice 58,313 units 59,625 units 57,000 units 60,938 units
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started