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How many units must Sunland sell

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Question - In 2019, Sunland sold 1000 units at $500 each, and earned net income of $40000. Variable expenses were $300 per unit, and fixed expenses were $170000. The same selling price is expected for 2020. Sunland's variable cost per unit will rise by 10% in 2020 due to increasing material costs, so they are tentatively planning to cut fixed costs by $10000. How many units must Sunland sell in 2020 to maintain the same income level as 2019?

a. 1000

b. 1176

c. 1111

d. 930

Reference no: EM132544097

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