Revert Creations Sells a Single Product at a Price of $50

question 23

Multiple Choice

Revert Creations sells a single product at a price of $50 per unit.Fixed costs total $312,000 and variable costs per unit are $24.Revert is considering the purchase of new equipment that would reduce variable costs per unit to $21, but fixed costs would increase to $334,370.Above what volume would Revert be profitable with the new machine, assuming the selling price remains constant?

• A)12,000 units
• B)11,530 units
• C)23,530 units
• D)There is not enough information provided to determine the answer.

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