If the company is able to reduce variable costs by $2.50 per unit in 2011 and other costs and unit revenues remain unchanged, how many units will the company have to sell in order to earn a net income of $50,000?
Answer: 440 grams for 1.54 is the better value
Explanation:
Take the price and divide by the number of grams
1.54 / 440 =0.0035 per gram
1.26 / 340 =0.003705882 per gram
0.0035 per gram < 0.003705882 per gram