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Case 21.3 Fairfield Company management has budgeted the following amounts for its next fiscal year Total fixed expenses$832.500 Sale price per unit Variable expenses per
Case 21.3 Fairfield Company management has budgeted the following amounts for its next fiscal year Total fixed expenses$832.500 Sale price per unit Variable expenses per unit $40 $25 Refer to Case 21.3. If Fairfield Company can reduce fixed expenses by $22,500, how will breakeven sales in units be affected? 80) 81) Refer to Case 21.3. If Fairfield Company spends an addit advertising, sales volume should increase by 2,500 units. What effect will this have on operating income? 82) Refer to Cuse 21.3. If Fairfield Company can reduce fixed expenses by $41.6 how much can variable expenses per unit increase and still allow the company to maintain the original breakeven sales in units? Refer to Case 21.3. If fixed expenses increase by 10%, to maintain the original breakeven sales in units, the sale price per unit would have to be which of the following? A) increased by 3.61% B) increased by 3.75% C) decreased by $5.55 D) decreased by 10% 83)
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