Moose Enterprises has fixed expenses of $200,000 per year. Right now, Moose Enterprises is selling its products for $100 per unit. Management is contemplating a 20% increase in the sale price for the next year. Variable costs are currently 40% of sales revenue and are not expected to change in dollar amount on a per unit basis next year (the company will pay the same amount for variable costs next year).

If fixed costs increase 12% next year, and the new sale price per unit goes into effect, how many units will need to be sold to break even?

Answer rating: 100% (QA)

To calculate the number of units needed to break even we first need to determine the total fixed cos... View the full answer