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QUICK Company X is selling its products for $200 per unit. The company has fixed expenses of $211,000 per year. This year, variable costs were
QUICK Company X is selling its products for $200 per unit. The company has fixed expenses of $211,000 per year. This year, variable costs were 40% of revenue and the variable cost per unit will not be affected by the proposed changes below.
Management is considering a 40% increase in the sales price. If fixed costs also increase 20% next year, how many units will need to be sold to breakeven?
Group of answer choices
253,200 units
None of these.
1,055 units
703 units
1,266 units
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