Question

2120 - Survey of Accounting Concepts 8 pt In 2019, X Company sold 5,450 units of its only product. Total revenue was $1,282,285, we was 51,462,235, total variables $645.825, and total fixed costs were $672,000. In 2020, there are only two expected changes variable $34,000? $3.30 per unit, and fixed costs will increase by $40,400. How many units wat X Company 7. AO 5,095 BO 7,388 CO 10,712 DO 15,532 EO 22,522 FO 32,657 ges: Variable costs will increase any sell in 2020 in order to 8 pt In 2019, X Company's profit function was 0.34R - $91,800, where in revenue and variable costs will not change, but fixed coste revenue have to be in order for X Comnom

Answer 1

New variable cost = ($645,825 / 5,450) + $3.30 = $121.80

New fixed cost = $672,000 + $40,400 = $712,400

Selling price per unit = $1,462,235 / 5,450 = $268.30

Contribution margin per unit = Selling price - New variable cost = $268.30 - $121.80 = $146.50

No of units to be sold = (New fixed cost + Target profit) / Contribution margin per unit

= ($712,400 + $34,000) / $146.50

= 5,095

Option A