Raleigh sold 1000 units at 500 each and earned net income, Ask an Expert

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Raleigh sold 1,000 units at $500 each, and earned net income of $50,000. Variable expenses were $300 per unit, and fixed expenses were $150,000. The same selling price is expected for 2012. Raleigh's variable cost per unit will rise by 10% in 2012 due to increasing material costs, so they are tentatively planning to cut fixed costs by $15,000. How many units must Raleigh sell in 2012 to maintain the same income level as 2011?

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M9796892

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