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a company currently sells 15,000 units a month for $50 each, has variable costs of $20 per unit, and fixed costs of $300,000. the company is considering increasing the price of its units to $60 per unit.
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42 votes
42 votes
a company currently sells 15,000 units a month for $50 each, has variable costs of $20 per unit, and fixed costs of $300,000. the company is considering increasing the price of its units to $60 per unit. if the price is changed, how many units will the company need to sell for profit to remain the same as before the price change?

User NickHalden
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1 Answer

20 votes
20 votes

Answer:

12,000 units per month

Step-by-step explanation:

Profit is currently 15,000 × ($50 - $20) - $300,000 = $150,000. If price increases, demand will drop from 15,000 units to 12,000 units per month. hope this helps

User Kolyunya
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