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Parsa buys cell phones from the U.S. for $350 and sells them in Canada for $600. If he incurs advertising costs of $20,000 per year,
Parsa buys cell phones from the U.S. for $350 and sells them in Canada for $600. If he incurs advertising costs of $20,000 per year, determine:
- How many phones must he sell to breakeven?
- How much profit would he make if he sold 300 phones.
- Parsa is now considering increasing the price of his phones to $730. How many phones must he now sell to make the same amount of profit as in part b?
- How many less phones is that from part b?
- What is the percentage sales can decline to make the same profit as part b?
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Auditing Cases An Active Learning Approach
Authors: Mark S. Beasley, Frank A. Buckless, Steven M. Glover, Douglas F. Prawitt
2nd Edition
9781266566899
