Question: Some selected financial data from last month are given below. Management decides to increase the sales price by 12.5% (with no effect on unit variable

Some selected financial data from last month are given below. Management decides to increase the sales price by 12.5% (with no effect on unit variable costs) in the coming month. How many units must be sold to earn the same net profit as last month? (Choose the closest one if needed)

Some selected financial data from last month are

4,286

10,000

6,000

7,143

8,333

Sales revenue (10,000 units sold) Less: Variable costs Contribution margin Less: Fixed costs Net operating income Per unit $4.00 $1.50 $2.50 Total $40,000 $15,000 $25,000 $10,000 $15,000

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related General Management Questions!