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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