The 39444-TH company sells its product for $25 per unit. The variable expenses are $15 per unit. The 39444-TH company sold 52,000 units last year and reported the following results: Sales (52,060 balls) $1,300,000 Variable expenses Contribution margin Fixed expenses 780,000 520,000 321,000 Net operating income $ 199,000 The 39444-TH company considers reducing variable expenses per unit by 40% by investing in new equipment that would double the company's fixed expenses. If the new equipment is purchased, how many units will the 39444-TH company have to sell next year to earn the same net operating income, $199,000, as last year? (Round your answer, if necessary, to the closest number below.)

The 39444-TH company sells its product for $25 per unit. The variable expenses are $15 per unit. The 39444-TH company sold 52,000 units last year and reported the following results: Sales (52,060 balls) $1,300,000 Variable expenses Contribution margin Fixed expenses 780,000 520,000 321,000 Net operating income $ 199,000 The 39444-TH company considers reducing variable expenses per unit by 40% by investing in new equipment that would double the company's fixed expenses. If the new equipment is purchased, how many units will the 39444-TH company have to sell next year to earn the same net operating income, $199,000, as last year? (Round your answer, if necessary, to the closest number below.)

Survey of Accounting (Accounting I)

8th Edition

ISBN:9781305961883

Author:Carl Warren

Publisher:Carl Warren

Chapter12: Differential Analysis And Product Pricing

Section: Chapter Questions

Problem 1SEQ: Mario Company is considering discontinuing a product. The costs of the product consist of $20,000...

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