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X Company is considering modifying one of its main products next year. The modification would...

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Accounting

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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