Question

During the past year a company had total fixed costs of $700,000. Its product sold for $93 per unit. Variable costs during this time equaled $45 per unit. Next year the company is anticipating a 10% increase in total fixed costs and a $3 per unit decrease in variable costs but would like to maintain its current selling price per unit. How many units must the company sell next year to earn $1 million? (Round answer to complete units.)
A. 19,608
B. 34,706
C. 36,875
D. 20,833
E. 19,033

Answer

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