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The 87016-TH company sells its product for $25 per unit. The variable expenses are $15 per unit. The 87016-TH company sold 46,000 units last
The 87016-TH company sells its product for $25 per unit. The variable expenses are $15 per unit. The 87016-TH company sold 46,000 units last year and reported the following results: Sales (46,000 balls) $1,150,000 Variable expenses Contribution margin Fixed expenses 690,000 460,000 318,000 Net operating income $ 142,000 The 87016-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 87016-TH company have to sell next year to earn the same net operating income, $142,000, as last year? (Round your answer, if necessary, to the closest number below.) Multiple Choice < Prev 2 of 12 Next >
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