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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

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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