Question: In 2021, Sagar Corp. sold 3,000 units at $500 each. Variable expenses were $350 per unit, and fixed expenses were $780,000. The same variable expenses per unit and fixed expenses are expected for 2022. If Sagar cuts selling price by 4%, what is Sagar's break-even point in units for 2022?

Entrepreneurial Finance
6th Edition
ISBN:9781337635653
Author:Leach
Publisher:Leach
Chapter4: Preparing And Using Financial Statements
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Question:
In 2021, Sagar Corp. sold 3,000 units at $500 each. Variable expenses
were $350 per unit, and fixed expenses were $780,000. The same variable
expenses per unit and fixed expenses are expected for 2022.
If Sagar cuts selling price by 4%, what is Sagar's break-even point in units
for 2022?
Transcribed Image Text:Question: In 2021, Sagar Corp. sold 3,000 units at $500 each. Variable expenses were $350 per unit, and fixed expenses were $780,000. The same variable expenses per unit and fixed expenses are expected for 2022. If Sagar cuts selling price by 4%, what is Sagar's break-even point in units for 2022?
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