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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.

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  • Reference No.:- M92510734
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