Question
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
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:
- Increase by $5,000.
- Increase by $4,500.
- Increase by $2,000.
- Remain unchanged.
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Accounting For Managers Interpreting Accounting Information for Decision Making
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