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Chemstra (Pty) Ltd was incorporated in 2020. Its only product sells for R12 per unit, of which R7 is a variable cost. Chemstra projects that
Chemstra (Pty) Ltd was incorporated in 2020. Its only product sells for R12 per unit, of which R7 is a variable cost. Chemstra projects that fixed costs will total R120 000 in the coming year. If the company currently produce 48 000 units, by what percentage can sales volumes fall before NO Earnings Before Interest and Tax is recorded?
A. | 50% | |
B. | 25% | |
C. | 100% | |
D. | 200% |
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