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How many sales in units will jane company need

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Question - Jane has been told that there will be an increase in the price of her product line, which will ultimately increase the original variable cost of $60 by $20 a month. Her current sales per month are $220,000 at $110 per unit, with fixed costs of $80,000. Jane does not want to increase the price for customers, so she is planning to cut her own fixed costs by $12,000. How many sales in units will Jane's company need to make with these changes in order to keep prices the same while earning the same profit?

A: 3,600

B: 10,000

C: 2,934

D: 4,000

Reference no: EM131960419

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