Lagerfield Company Reported the Following Results from the Sale of 5,000

Multiple Choice

Lagerfield Company reported the following results from the sale of 5,000 hammers in May: sales $200,000, variable costs $120,000, fixed costs $60,000, and net income $20,000. Assume that Lagerfield increases the selling price of hammers by 10% on June 1. How many hammers will have to be sold in June to maintain the same level of net income?

A) 4,000
B) 4,300
C) 4,500
D) 5,000