Bates Company currently produces and sells 16,000 units of a product that has a contribution margin of $9 per unit. The company sells the product for a sales price of $24 per unit. Fixed costs are $36,000. The company has recently invested in new technology and expects the variable cost per unit to fall to $14 per unit. The investment is expected to increase fixed costs by $27,000. After the new investment is made, how many units must be sold to breakeven? (Do not round intermediate calculations.)

Bates Company currently produces and sells 16,000 units of a product that has a contribution margin of $9 per unit. The company sells the product for a sales price of $24 per unit. Fixed costs are $36,000. The company has recently invested in new technology and expects the variable cost per unit to fall to $14 per unit. The investment is expected to increase fixed costs by $27,000. After the new investment is made, how many units must be sold to breakeven? (Do not round intermediate calculations.)

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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