Food company is considering a modification to one of its

Reference no: EM13576951

Food Company is considering a modification to one of its main products next year that would make it more attractive to customers. As a result, Food Company could increase the selling price by $2.96. However, fixed costs would increase to $15,390.Financial information for the product for this year is as follows:

Selling price: $10.34

Variable costs: $3.30

Fixed costs: $10,600
At what unit sales level would Food Company be indifferent between modifying the product and not modifying it?

Reference no: EM13576951

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