A Total of 30,000 Units Were Sold Last Year

Question 310
Multiple Choice

A total of 30,000 units were sold last year.The contribution margin per unit was $2,and total fixed expenses were $20,000 for the year.This year,fixed expenses are expected to increase to $26,000,but the contribution margin per unit will remain unchanged at $2.How many units must be sold this year to earn the same operating income as was earned last year? A) 23,000 units. B) 33,000 units. C) 30,000 units. D) 13,000 units.Units required = (26,000 + 40,000)/2 = 33,000 units.