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Grosheim Incorporated has fixed expenses of $ 211 comma 500 $211,500 per year. Rightnow, Grosheim Incorporated is selling its products for $ 250 $250 per

Grosheim Incorporated has fixed expenses of $ 211 comma 500

$211,500 per year. Rightnow, Grosheim Incorporated is selling its products for $ 250

$250 per unit. Management is contemplating a 30

30% increase in the selling price for the next year. Variable costs are currently 20

20% of sales revenue and are not expected to change in dollar amount on a per unit basis next year(the company will pay the same amount for variable costs nextyear).

If fixed costs increase 20

20% nextyear, and the new selling price per unit goes intoeffect, how many units will need to be sold tobreakeven?

A.

677

677 units

B.

253 comma 800

253,800 units

C.

923

923 units

D.

846

846 units

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