Jackson Company currently sells its products for $1,000 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 on a dollar per unit basis for next year (the company will pay the same amount for variable costs next year). Fixed expenses are $140,000 per year. What is the break-even point in units at the anticipated selling price per unit next year?

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The Answer of Jackson Company currently sells its products for $1,000 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 on a dollar per unit basis for next year (the company will pay the same amount for variable costs next year). Fixed expenses are $140,000 per year. What is the break-even point in units at the anticipated selling price per unit next year?

Jackson Company Currently Sells Its Products for $1,000 Per Unit