Maintaining the same level of net income


Lagerfield Company reported the following results from the sale of 5,000 hammers in May: sales $200,000, variable costs $120,000, fixed costs $60,000, and net income $20,000. Assume that Lagerfield increases the selling price of hammers by 10% on June 1. How many hammers will have to be sold in June to maintain the same level of net income?

A) 4,000.

B) 4,300.

C) 4,500.

D) 5,000.

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Accounting Basics: Maintaining the same level of net income
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