Question

ABC Company sells canoes for $800 each and has variable expenses of $300. The company's fixed...

ABC Company sells canoes for $800 each and has variable expenses of $300. The company's fixed costs are 195,000 per year. Assume that the company is able to reduce the cost of its direct materials by $90, but it needs to rent an additional component for its equipment to process the new materials at $26,350 per year. What is the total number of units that must be sold to breakeven with this new plan, rounded to the nearest unit?
a. 375
b. 331
c. 390
d. 540

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