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XYZ Company's single product has a selling price of $25 per unit. Last year the company reported profit of $25,000 and variable expenses totaling $120,000.
XYZ Company's single product has a selling price of $25 per unit. Last year the company reported profit of $25,000 and variable expenses totaling $120,000. The product has a 40% contribution margin ratio. Because of competition, XYZ Company will be forced in the current year to reduce its selling price by $2 per unit. How many units must be sold in the current year to earn the same profit as was earned last year? Select one: O a. 8,000 O b. 12,000 O c. 5,500 O d. 14,500 O e. 10,000
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