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Author Question: Hosbach Enterprises has fixed expenses of $200,000 per year. Right now, Hosbach Enterprises is ... (Read 70 times)

vHAUNG6011

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Hosbach Enterprises has fixed expenses of $200,000 per year.  Right now, Hosbach Enterprises is selling its products for $100 per unit. Management is contemplating a 20% increase in the sale 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).
If fixed costs increase 10% next year, and the new sale price per unit goes into effect, how many units will need to be sold to break-even?
◦ 1,375 units
◦ 3,667 units
◦ 220,000 units
◦ 2,750 units


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Marked as best answer by vHAUNG6011 on Jan 5, 2020

kingfahad97

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vHAUNG6011

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Reply 2 on: Jan 5, 2020
YES! Correct, THANKS for helping me on my review


debra928

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Reply 3 on: Yesterday
Wow, this really help

 

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