Scott Incorporated Has Been in Business for Several Months

Scott Incorporated has been in business for several months. Because of increased competition in the region for part adapters, the managers at Scott Incorporated is considering cutting sales price from $30 per adapter to $26 per adapter. If the variable expenses remain at $20 per adapter and the fixed expenses remain at $6200, how many adapters will the managers need to sell to break even? Compute the breakeven sales in units.

A) 1008 units
B) 1014 units
C) 1034 units
D) 1088 units

Correct Answer:

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