Question
5 For the year ended dec 31/2020 Gregg Company reported the following operating results while operating at 70% capacity Sales (35,000 units) to retailers for
5 For the year ended dec 31/2020 Gregg Company reported the following operating results while operating at 70% capacity Sales (35,000 units) to retailers for $50 per unit ($1,750,000) Cost of goods sold $1,000,000 (70% variable) Operating expenses $500,000 (70% variable) Net income $ 250,000 Wholesaler company offers Gregg company to purchase all units produced instead of selling it to retailers, if Gregg company accepts, it will use the full capacity and save 50% of variable operating and 50% of fixed operating. Instructions: if the Gregg makes the decision and sell to the wholesaler company 1. sales level in units will be 2. what is the minimum selling price per unit (maintain the same level of net income)
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