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Atlas Company sells only one product at a regular price of $10.00 per unit. Variable expenses are 70% of sales, and fixed expenses are $50,000.
Atlas Company sells only one product at a regular price of $10.00 per unit. Variable expenses are 70% of sales, and fixed expenses are $50,000. Management has decided to decrease the selling price to $9.00 in the hope of increasing its volume of sales. What is the sales dollars level required to break even at the old price of $10.00? (Note: Round answer to two decimal places.)
A. | $166,666.67 | ||
B. | $126,000.50 | ||
C. | $180,000.30 | ||
D. |
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