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Units must be sold this year

Company X sold 25,000 units of product last year. The contribution margin per unit was 2, and fixed expenses totaled 40,000 for the year. This year fixed expenses are expected to increase to 45,000, but the contribution margin per unit will remain unchanged at 2. How many units must be sold this year to earn the same net operating income as was earned last year:

22,500
35,000
27,500
2,500

Solution Summary

This provides the steps to compute the units must be sold this year to earn the same net operating income

$2.19