Question
ABC company is currently producing and selling 215,000 units a year The selling price is The variable expenses are 12.00 per unit 7.25 per
ABC company is currently producing and selling 215,000 units a year The selling price is The variable expenses are 12.00 per unit 7.25 per unit Total fixed expenses are 237,500 per year. Net income produced by these numbers is 783,750 per year. Compute the break-even point in unit sales and total dollar sales, show your work Break even in units Break even in Sales Now the owner believes that a unit selling price will result in a Show your work below 8% 20% reduction in the increase in in units sold. Show what effects would happen because of the proposed changes on net income. Total change in net income would be Show your work below 3 points 3 points 8 points
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Fundamentals of Cost Accounting
Authors: William Lanen, Shannon Anderson, Michael Maher
5th edition
978-1259728877, 1259728870, 978-1259565403
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