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?
253 comma 800