How many units per month would the company have to sell

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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.

Reference no: EM131702039

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