Question - Pittsboro Corporation produces and sells a single product. Data for that product are:
Sales price per unit $ 540
Variable cost per unit $ 230
Fixed expenses for the month $1,200,000
Currently selling 4,000 units
Management is discussing increasing the price to $ 580 to cover an increase in fixed expenses of $88,000. Management believes they might lose 2% of sales per month.
How many units per month would the company have to sell to maintain its current level of operating income? Round up to the nearest whole unit.