How many units must be sold in the current year


Tower Inc.'s single product has a selling price of $25 per unit. Last year the company reported a profit of $20,000 and variable expenses totaling $180,000. The product has a 40% contribution margin ratio. Because of competition, Tower Inc. will be forced in the current year to reduce its selling price by $2 per unit. How many units must be sold in the current year to earn the same profit as was earned last year?

Request for Solution File

Ask an Expert for Answer!!
Accounting Basics: How many units must be sold in the current year
Reference No:- TGS0706354

Expected delivery within 24 Hours