Knoll, Inc. currently sells 51,000 units a month for $98 each, has variable costs of $68 per unit, and fixed costs of $108,000. Knoll is considering increasing the price of its units to $108 per unit. If the price is changed, how many units will Knoll need to sell for profit to remain the same as before the price change?
Knoll, Inc. currently sells 51,000 units a month for $98 each, has variable costs of $68 per unit, and fixed costs of $108,000. Knoll is considering increasing the price of its units to $108 per unit. If the price is changed, how many units will Knoll need to sell for profit to remain the same as before the price change?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Knoll, Inc. currently sells 51,000 units a month for $98 each, has variable costs of $68 per unit, and fixed costs of $108,000. Knoll is considering increasing the price of its units to $108 per unit. If the price is changed, how many units will Knoll need to sell for profit to remain the same as before the price change?
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