Pittsboro Corporation produces and sells a single product. Data for that product are: Management is discussing increasing the price to $525 to cover an increase in fixed expenses of $80,000. Management believes they might lose 2% of sales per month.
How many units per month would the company have to sell to maintain its current level of operating income? Round up to the nearest whole unit.

Question

Pittsboro Corporation produces and sells a single product. Data for that product are:  Management is discussing increasing the price to $525 to cover an increase in fixed expenses of $80,000. Management believes they might lose 2% of sales per month.
How many units per month would the company have to sell to maintain its current level of operating income? Round up to the nearest whole unit.

Quizplus · Accepted Answer

The Answer of Pittsboro Corporation produces and sells a single product. Data for that product are:  Management is discussing increasing the price to $525 to cover an increase in fixed expenses of $80,000. Management believes they might lose 2% of sales per month.
How many units per month would the company have to sell to maintain its current level of operating income? Round up to the nearest whole unit.

Pittsboro Corporation Produces and Sells a Single Product