Hurst Co Manufactures and Sells a Single Product -In the Current Year,the Company Sold 43,000 Units

question 90

Multiple Choice

Hurst Co. manufactures and sells a single product. Price and cost data regarding this product are as follows: $\begin{array}{|l|r|}\hline \text { Selling price } & \$ 40 \text { per unit } \\\hline \text { Variable manufacturing cost } & \$ 20 \text { per unit } \\\hline \text { Variable selling \& administrative expenses } & \$ 6 \text { per unit } \\\hline \text { Fixed manufacturing overhead } & \$ 208,000 \text { per year } \\\hline \text { Fixed selling \& administrative expenses } & \$ 324,000 \text { per year } \\\hline\end{array}$



-In the current year,the company sold 43,000 units.Due to competition,management will be forced to lower the selling price by 10% next year.How many units must be sold next year to earn the same operating income as was earned in the current year?

• A) 50,000 units.
• B) 53,200 units.
• C) 58,800 units.
• D) 60,200 units.

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Definitions:

Stereoscopic Vision

The ability to perceive depth and three-dimensional structure from visual information derived from two slightly different perspectives provided by the two eyes.

Binocular Inversion

A visual phenomenon where the vision is flipped upside down due to the use of devices that invert the light paths reaching the eyes.

Binocular

Pertaining to or involving both eyes, especially in providing stereoscopic vision or depth perception.

Revision

The process of modifying, editing, or reorganizing written or verbal material to make it more accurate, comprehensible, or appropriate.