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Question - Pittsboro Corporation produces and sells a single product. Data for that product are:
Sales price per unit $ 540
Variable cost per unit $ 230
Fixed expenses for the month $1,200,000
Currently selling 4,000 units
Management is discussing increasing the price to $ 580 to cover an increase in fixed expenses of $88,000. Management believes they might lose 2% of sales per month.
How many units per month would the company have to sell to maintain its current level of operating income? Round up to the nearest whole unit.
Revenue recognition under U.S. GAAP and IFRS comparison.
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