Author Question: Samson Company currently sells its products for $50 per unit. Management is contemplating a 20% ... (Read 73 times)

sdfghj · **on:** Jan 5, 2020

Samson Company currently sells its products for $50 per unit. Management is contemplating a 20% increase in the selling price for the next year. Variable costs are currently 40% of sales revenue and are not expected to change in dollar amount on a per unit basis next year (the company will pay the same amount for variable costs next year). Fixed expenses are $80,000 per year.

What is the break-even point in units at the anticipated selling price per unit next year?
◦ 1,000 units
◦ 2,000 units
◦ 8,000 units
◦ 2,222 units

31809pancho · **Reply #1 on:** Jan 5, 2020

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