Reference: 08-11
Hurst Co. manufactures and sells a single product. Price and cost data regarding this product are as follows: $$\begin{array} { | l | l | }
\hline \text { Selling price } & \$ 40 \text { per unit } \
\hline \text { Variable manufacturing costs } & \$ 20 \text { per unit } \
\hline \text { Variable selling \& admin. expenses } & \$ 6 \text { per unit } \
\hline \text { Fixed manufacturing overhead } & \$ 208,000 \text { per year } \
\hline \text { Fixed selling \& admin. expenses } & \$ 324,000 \text { per year } \
\hline
\end{array}$$
-In the current year, the company sold 43,000 units. Due to competition, management will be forced to lower the selling price by 10% next year. How many units must be sold next year to earn the same income as was earned in the current year?

Question

Reference: 08-11
Hurst Co. manufactures and sells a single product. Price and cost data regarding this product are as follows: $$\begin{array} { | l | l | } 
\hline \text { Selling price } & \$ 40 \text { per unit } \
\hline \text { Variable manufacturing costs } & \$ 20 \text { per unit } \
\hline \text { Variable selling \& admin. expenses } & \$ 6 \text { per unit } \
\hline \text { Fixed manufacturing overhead } & \$ 208,000 \text { per year } \
\hline \text { Fixed selling \& admin. expenses } & \$ 324,000 \text { per year } \
\hline
\end{array}$$
-In the current year, the company sold 43,000 units. Due to competition, management will be forced to lower the selling price by 10% next year. How many units must be sold next year to earn the same income as was earned in the current year?

Quizplus · Accepted Answer

The Answer of Reference: 08-11
Hurst Co. manufactures and sells a single product. Price and cost data regarding this product are as follows: $$\begin{array} { | l | l | } 
\hline \text { Selling price } & \$ 40 \text { per unit } \
\hline \text { Variable manufacturing costs } & \$ 20 \text { per unit } \
\hline \text { Variable selling \& admin. expenses } & \$ 6 \text { per unit } \
\hline \text { Fixed manufacturing overhead } & \$ 208,000 \text { per year } \
\hline \text { Fixed selling \& admin. expenses } & \$ 324,000 \text { per year } \
\hline
\end{array}$$
-In the current year, the company sold 43,000 units. Due to competition, management will be forced to lower the selling price by 10% next year. How many units must be sold next year to earn the same income as was earned in the current year?

Reference: 08-11 Hurst Co -In the Current Year, the Company Sold 43,000 Units

Reference: 08-11
Hurst Co -In the Current Year, the Company Sold 43,000 Units