If a company reduces their fixed costs from $219,000 to $158,000 when the selling price of $35 per unit and the variable costs of $34 per unit remain the same, how many units do they need to sell to generate the same operating income (round to the nearest whole number)?

Intermediate Financial Management (MindTap Course List)
13th Edition
ISBN:9781337395083
Author:Eugene F. Brigham, Phillip R. Daves
Publisher:Eugene F. Brigham, Phillip R. Daves
Chapter16: Capital Structure Decisions
Section: Chapter Questions
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If a company reduces their fixed costs from $219,000 to $158,000 when the selling price of $35 per unit and
the variable costs of $34 per unit remain the same, how many units do they need to sell to generate the
same operating income (round to the nearest whole number)?
Transcribed Image Text:If a company reduces their fixed costs from $219,000 to $158,000 when the selling price of $35 per unit and the variable costs of $34 per unit remain the same, how many units do they need to sell to generate the same operating income (round to the nearest whole number)?
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