Marston Company sells a single product at a sales price of ($ 50) per unit. Fixed costs

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Marston Company sells a single product at a sales price of \(\$ 50\) per unit. Fixed costs total \(\$ 15,000\) per month, and variable costs amount to \(\$ 20\) per unit. If management reduces the sales price of this product by \(\$ 5\) per unit, the sales volume needed for the company to break even will:

a. Increase by \(\$ 5,000\).

c. Increase by \(\$ 2,000\).

b. Increase by \(\$ 4,500\).

d. Remain unchanged.

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Financial And Managerial Accounting

ISBN: 12

14th International Edition

Authors: Jan R. Williams, Joseph V. Carcello, Mark S. Bettner, Sue Haka, Susan F. Haka

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