ABC Company must sell 1,000 units to reach its target profit with its current contribution margin of $20. The company expects to be able to improve its efficiency by purchasing automated equipment that will increase its fixed costs and lower its variable costs. How will target profit change if ABC Company achieves this redesign? 

a. the number of units needed to reach its target profit will remain the same.

 b. the number of units needed to reach its target profit will increase

. c. the number of units needed to reach its target profit will decrease. 

d. there is not enough information to know how target profit units will change.

Answer rating: 100% (QA)

ANSWER a the number of units needed to reach its target profit will ... View the full answer