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Lindsay Company Reported the Following Results from Sales of 5,000

Question 58

Multiple Choice

Lindsay Company reported the following results from sales of 5,000 units for the month of June:
 Sales $200,000 Variable expenses $120,000 Fixed expenses $60,000\begin{array}{|l|r|}\hline \text { Sales } & \$ 200,000 \\\hline \text { Variable expenses } & \$ 120,000 \\\hline \text { Fixed expenses } & \$ 60,000 \\\hline\end{array}
Assume that Lindsay increases the selling price of the product by 10% on July 1.How many units would have to be sold in July in order to generate an operating income of $20,000?


A) 4,000 units.
B) 4,300 units.
C) 4,500 units.
D) 5,000 units.

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