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Management at the Giant Company currently sells its products for $375 per unit and is contemplating a 40% increase in the selling price for the
Management at the Giant Company currently sells its products for $375 per unit and is contemplating a 40% increase in the selling price for the next year. Variable costs are currently 15% of sales revenue and are not expected to change in dollar amount on a per unit basis next year (the company will still pay the same variable cost per unit). Fixed expenses are $134,500 per year. If fixed costs were to decrease 20% during the current year and the new selling price goes into effect, how many units will need to be sold to breakeven? OA. 287 units B. 150,640 units OC. 230 units OD. 205 units
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