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At what unit sales level would x company be indifferent

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Question - X Company is considering modifying one of its main products next year. The modification would make the product more attractive to customers and permit X Company to increase its price without affecting unit sales. Financial information for the product for this year was as follows:

Selling price $9.40

Variable costs per unit $3.70

Total fixed costs $10,260

X Company plans to increase the selling price by $2.20. Fixed costs are expected to increase to $13,260. At what unit sales level would X Company be indifferent between modifying the product and not modifying it?

Reference no: EM133001445

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