Indifferent between modifying the product

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Reference no: EM13792244

X Company is considering a modification to one of its main products next year that would make it more attractive to customers. As a result, X Company could increase the selling price by $2.92. However, fixed costs would increase to $15,450. Financial information for the product for this year is as follows:

Selling price $10.38

Variable costs $4.04

Fixed costs $11,400

At what unit sales level would X Company be indifferent between modifying the product and not modifying it?

Reference no: EM13792244

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