Business
Niami12
2016-04-09 19:46:21
Knoll, inc. currently sells 15,000 units a month for $50 each, has variable costs of $20 per unit, and fixed costs of $300,000. knoll is considering increasing the price of its units to $60 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?
ANSWERS
AlexanderFava564
2016-04-10 00:12:59

Cost per unit (300,000÷15,000)+20=40 Current profit 50×15,000−40×15,000=150,000 Profit change 60×15,000−40×15,000=300,000 units will knoll need to sell for profit to remain the same as before the price change is (150,000+300,000)÷40=11,250

ADD ANSWER