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Scott Incorporated has been in business for several months
Scott Incorporated has been in business for several months. Because of increased competition in the region for part adapters, the managers at Scott Incorporated is considering cutting sales price from $32 per adapter to $28 per adapter.
|
New sales price per poster |
$28 |
|
Variable price per adapter |
$21 |
|
New contribution margin per adapter |
$7 |
If the variable expenses remain at $21 per adapter and the fixed expenses remain at $6,500, how many adapters will the managers need to sell to break even? Compute the breakeven sales in units.
A) 902 units
B) 908 units
C) 928 units
D) 982 units
Expert Solution
Answer: C
Explanation: C)
$6,500 + 0 / $7 = 928.57 ~928
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