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In year 1 Frodo Company has variable costs of $80 per unit, total fixed costs of $200,000, and a break-even point of 5,000 units. If
In year 1 Frodo Company has variable costs of $80 per unit, total fixed costs of $200,000, and a break-even point of 5,000 units. If the company raises the sales price per unit by $10 the following year, how many units must Frodo Company sell to break even in Year 2?
A. 3,000 units
B. 4,000 units
C. 5,000 units
D. 6,000 units
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