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Lewis Enterprises management has budgeted the following amounts for its next fiscal year: Requirements: a. If Lewis Enterprises can reduce fixed expenses by $25,000, how
Lewis Enterprises management has budgeted the following amounts for its next fiscal year: Requirements: a. If Lewis Enterprises can reduce fixed expenses by $25,000, how will breakeven sales in units be affected? b. If Lewis Enterprises spends an additional $1,000 on advertising, sales volume should increase by 1,000 units. What effect will this have on income? c. If Lewis Enterprises can reduce fixed expenses by $40,000, by how much can variable expenses per unit increase and still allow the company to maintain the original breakeven sales in units? d. If fixed expenses increease by 25%, to maintain the original breakeven sales in units, what would be the selling price per unit have to be
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