Grosheim Incorporated has fixed expenses of $ 211 comma 500 $211,500 per year. Rightnow, Grosheim Incorporated is selling its products for $ 250 $250...
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Grosheim Incorporated has fixed expenses of

$ 211 comma 500


$211,500 per year. Right​ now, Grosheim Incorporated is selling its products for $ 250


$250 per unit. Management is contemplating a 30


30​% increase in the selling price for the next year. Variable costs are currently 20


20​% 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 20


20​% next​ year, and the new selling price per unit goes into​ effect, how many units will need to be sold to​ breakeven?

A.

677


677 units

B.

253 comma 800


253,800 units

C.

923


923 units

D.

846


846 units

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