Fairfield Company management has budgeted the following amounts for its next fiscal year:
$$\begin{array} { | l | r | }
\hline \text { Total fixed expenses } & \$ 832,500 \
\hline \text { Sale price per unit } & \$ 40 \
\hline \text { Variable expenses per unit } & \$ 25 \
\hline
\end{array}$$ If fixed expenses increase by 10%, to maintain the original breakeven sales in units, the sale price per unit would have to be:

Question

Fairfield Company management has budgeted the following amounts for its next fiscal year:
$$\begin{array} { | l | r | } 
\hline \text { Total fixed expenses } & \$ 832,500 \
\hline \text { Sale price per unit } & \$ 40 \
\hline \text { Variable expenses per unit } & \$ 25 \
\hline
\end{array}$$ If fixed expenses increase by 10%, to maintain the original breakeven sales in units, the sale price per unit would have to be:

Quizplus · Accepted Answer

The Answer of Fairfield Company management has budgeted the following amounts for its next fiscal year:
$$\begin{array} { | l | r | } 
\hline \text { Total fixed expenses } & \$ 832,500 \
\hline \text { Sale price per unit } & \$ 40 \
\hline \text { Variable expenses per unit } & \$ 25 \
\hline
\end{array}$$ If fixed expenses increase by 10%, to maintain the original breakeven sales in units, the sale price per unit would have to be:

Fairfield Company Management Has Budgeted the Following Amounts for Its