A company sells 20000 units of product in Year 1 for $8 each. Variable costs are $4 each and the company made a net income of $50,000. In Year 2, the company raises the sale price to $10 due to a 50% increase in fixed costs. Variable cost is not impacted. How many units must the company sell to break even?

Answer rating: 100% (QA)

To calculate the number of units the company must sell to break even in Year 2 after raising the sal... View the full answer