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Beasley Company Currently Sells Its Products for $30 Per Unit

Question 171

Multiple Choice

Beasley Company currently sells its products for $30 per unit. Management is contemplating a 10% increase in the selling price for the next year. Variable costs are currently 40% of sales revenue and are not expected to change in dollar amount on a per unit basis next year (the company will pay the same amount for variable costs next year) . Fixed expenses are $68,250 per year. What is the breakeven point in units at the anticipated selling price per unit next year?


A) 1517 units
B) 3250 units
C) 5688 units
D) 2275 units

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