X Company is considering modifying one of its main products next year. The modification would...
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X Company is considering modifying one of its main products next year. The modification would make the product more attractive to customers and permit X Company to increase its price without affecting unit sales. Financial information for the product for this year was as follows:
| Selling price | $9.52 |
| Variable costs per unit | $3.90 |
| Total fixed costs | $10,000 |
X Company plans to increase the selling price to $11.96. Fixed costs would increase by $3,120. At what unit sales level would X Company be indifferent between modifying the product and not modifying it?
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