Business
Business, 17.03.2021 23:50, conendsley

He 96039-SQ company manufactures a product that sells for $25 per unit. At present, the product is manufactured in a factory that mostly uses direct labor workers. The variable expenses are $15 per unit and the direct labor cost makes up 60% of variable expenses. Last year, the 96039-SQ company sold 58,000 units of its product and provided the following results:

Sales (58,000 balls) $ 1,450,000
Variable expenses 870,000
Contribution margin 580,000
Fixed expenses 374,000
Net operating income $ 206,000
The 96039-SQ company considers building a new and high-tech factory. The new factory would reduce variable expenses per unit by 40%, but would double the company's fixed expenses per year due to investment in fixed assets.

If the new factory is built, how many units will the 96039-SQ company have to sell next year to earn the same net operating income, $206,000, as last year? (Round your answer, if necessary, to the closest number below.)

answer
Answers: 2

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