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Paulsen Company sells only one product. The regular selling price is $50. Variable costs are...

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Accounting

Paulsen Company sells only one product. The regular selling price is $50. Variable costs are 70% of this selling price, and fixed costs are $7,500 per month. Management decides to increase the selling price from $50 to $55 per unit. Assume that the cost of the product and the fixed operating expenses are not changed by this pricing decision. At the original selling price of $50 per unit, how many units must Paulsen sell to break even?

500 units

520 units

465 units

440 units

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