If the company”s sales volume in units decreases by 30%, and…
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 sales volume in units decreases by 30%, and if it desires a targeted net operating income of $29,000, then the selling price should be:
A) $58.85
B) $60.75
C) $64.50
D) $75.00
