Question
RED manufactures a product which sells at 30 per unit and the variable cost is 23 per unit. Fixed costs are 50,000. If the selling
RED manufactures a product which sells at 30 per unit and the variable cost is 23 per unit. Fixed costs are 50,000. If the selling price is increased by 3, and all other costs remain unchanged, the break-even point in units will:
a. decrease by 1190 units (rounded to the nearest unit)
b. increase by 2,000 units
c. increase by 2,143 units
d. decrease by 2,143 units
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Accounting Tools for Business Decision Making
Authors: Paul D. Kimmel, Jerry J. Weygandt, Donald E. Kieso
6th edition
1118096894, 978-1-11921511, 978-1118096895
