Boss Enterprises currently sells its products for $30 per unit. Management is contemplating a 40% increase in the selling price for the next year. Variable costs are currently 40% of sales revenue and are not expected to change next year. Fixed expenses are $126,000 per year. What is the breakeven point in units at the current selling price? O A. 18 units ов. 10,500 units O C. 3,000 units O D. 7,000 units

Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
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Chapter7: Budgeting
Section: Chapter Questions
Problem 13PA: Caribbean Hammocks currently sells 75.000 units at $50 per unit. Its expenses are: Management...
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Boss Enterprises currently sells its products for $30 per unit. Management is contemplating a 40% increase in the selling price for the next year. Variable costs are currently 40% of sales revenue and are not expected to change next year. Fixed expenses are $126,000 per year.
What is the breakeven point in units at the current selling price?
O A. 18 units
ов.
10,500 units
O C. 3,000 units
O D. 7,000 units
Transcribed Image Text:Boss Enterprises currently sells its products for $30 per unit. Management is contemplating a 40% increase in the selling price for the next year. Variable costs are currently 40% of sales revenue and are not expected to change next year. Fixed expenses are $126,000 per year. What is the breakeven point in units at the current selling price? O A. 18 units ов. 10,500 units O C. 3,000 units O D. 7,000 units
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