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How many units will need to be sold to breakeven

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Reference no: EM132510114

Question1 : Oscar Incorporated currently sells its products for $390 per unit. Management is contemplating a 30% increase in the selling price for the next year. Variable costs are currently 20% of sales revenue. The variable cost per unit is not expected to change next year. Fixed expenses are $180,000 per year. If ?xed costs were to decrease 10% during the current year and the new selling price goes into effect, how many units will need to be sold to breakeven? (The variable cost per unit will not change with the price increase.) 

A. 338 units

B. 2,077 units

C. 378 units

D. 198,000 units

Reference no: EM132510114

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