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Sinclair Company's product has a selling price of 25 per unit. Last year the company reported a profit of 20,000 and variable expenses totalling 180,000.
Sinclair Company's product has a selling price of 25 per unit. Last year the company reported a profit of 20,000 and variable expenses totalling 180,000. The product has a 40% contribution margin ratio. Because of competition, Sinclair Company will be forced in the current year to reduce its selling price by 2.00 per unit. How many units must be sold in the current year to earn the same profit as was earned last year?
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