A company is currently selling 10,000 units of product for $40 per unit. The unit contribution margin is $27 and fixed costs are $174,000. The company believes that spending $30,000 on advertising will allow them to increase the selling price to $45. If these changes are made, how many units will have to be sold to earn $100,000 per year?

Answer rating: 100% (QA)

To determine the number of units that need to be sold to earn 100000 per year after the proposed cha... View the full answer