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Your company manufactures swimming pools and has reached its manufacturing capacity with its current facilities at 5,000 units per year. At this level, fixed costs
Your company manufactures swimming pools and has reached its manufacturing capacity with its current facilities at 5,000 units per year. At this level, fixed costs total $3,000,000 per year, variable costs are $2,100 per unit and units are sold at $3,000 per unit. Assuming additional capacity can be rented for $500,000 fixed per year, how many additional units must be sold to breakeven on this additional capacity assuming no other changes? 0 212 3,889 3,333 556
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