Sunnyside Company currently sells its products for $500 per unit.Management is contemplating a 10% increase in the selling price for the next year.Variable costs are currently 20% of sales revenue and are not expected to change next year.Fixed expenses are $150,000 per year. If fixed costs were to decrease 10% during the current year and the new selling price goes into effect,how many units will need to be sold to breakeven?
A) 1,100 units
B) 300 units
C) 254 units
D) 165,000 units
Correct Answer:
Verified
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