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Giddings Company manufactures and sells a single product, Product G.The product sells for $60 per unit and has a contribution margin ratio of 40 percent.The
Giddings Company manufactures and sells a single product, Product G.The product sells for $60 per unit and has a contribution margin ratio of 40 percent.The company's monthly fixed expenses are $28,800.
If the selling price is reduced by 5%, variable costs per unit reduced by $1.00, and fixed costs increased to a total of $40,750, how many units would need to be sold to earn operating income equal to 10% of sales revenue? (Ignore income taxes.)
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