Crane reported the following results from the sale of 5000 units in May: sales $300000, variable costs $165000, fixed costs $65000, and net income $70000. Assume that Crane increases its selling price by 5% on June 1. How many units will have to be sold in June to maintain the same level of net income? O 4500. O 4725. O 4750. O 5000.
Crane reported the following results from the sale of 5000 units in May: sales $300000, variable costs $165000, fixed costs $65000, and net income $70000. Assume that Crane increases its selling price by 5% on June 1. How many units will have to be sold in June to maintain the same level of net income? O 4500. O 4725. O 4750. O 5000.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Crane reported the following results from the sale of 5000 units in May: sales $300000, variable costs $165000, fixed costs $65000,
and net income $70000. Assume that Crane increases its selling price by 5% on June 1. How many units will have to be sold in June to
maintain the same level of net income?
O 4500.
4725.
4750.
O 5000.
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