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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Related Book For
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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