Consider each of the following questions independently
Holger Incorporated, which produces and sells a single product, has provided the following
data:
Sales
2,000 units
Selling price
$60 per unit
Variable expense
$40 per unit
Fixed expense
$20,000
Consider each of the following questions independently.
If the company”s fixed expenses increased by $8,000, how many units must be sold to reach a target net operating income of $36,000:
A) 1,400 units
B) 2,200 units
C) 2,400 units
D) 3,200 units
