Hosbach Enterprises has fixed expenses of $200,000 per year.Right now,Hosbach Enterprises is selling its products for $100 per unit.Management is contemplating a 20% increase in the sale 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). If fixed costs increase 10% next year,and the new sale price per unit goes into effect,how many units will need to be sold to breakeven?

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The Answer of  Hosbach Enterprises has fixed expenses of $200,000 per year.Right now,Hosbach Enterprises is selling its products for $100 per unit.Management is contemplating a 20% increase in the sale 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). If fixed costs increase 10% next year,and the new sale price per unit goes into effect,how many units will need to be sold to breakeven?

Hosbach Enterprises Has Fixed Expenses of $200,000 Per Year