Tentatively planning to cut fixed costs

Reference no: EM13160533

In 2010, Logan sold 1,000 units at $500 each, and earned net income of $40,000. Variable expenses were $300 per unit, and fixed expenses were $160,000. The same selling price is expected for 2011. Logan's variable cost per unit will rise by 10% in 2011 due to increasing material costs, so they are tentatively planning to cut fixed costs by $10,000. How many units must Logan sell in 2011 to maintain the same income level as 2010?

A) 882

B) 1,000

C) 1,056

D) 1,118

Reference no: EM13160533

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