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X company thinks that it can increase sales to 26000 units

Question - The following information is available for the 20,000 units of X Company's one product sold in 2016:

Selling price - $54

Variable costs per unit - $10

Fixed costs - $320,000

In 2017, variable costs per unit and fixed costs will not change. X Company thinks that it can increase sales to 26,000 units by lowering the selling price. What must the selling price be in 2017 in order for X Company to earn $593,600?

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Accounting Basics: X company thinks that it can increase sales to 26000 units

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