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SRT Company sells only one product. The regular selling price is $30 per unit. The entity plans/budgets to sell 6oo units. Variable costs are 70%
SRT Company sells only one product. The regular selling price is $30 per unit. The entity plans/budgets to sell 6oo units. Variable costs are 70% of this selling price, and fixed costs are $4,500 per month. Management decides to increase the selling price from $30 to $35 per unit. Assume that there is no change in the variable expense ratio and no change in fixed costs and they still plan/budget to sell 600 units. How many units do they need to sell to earn a target profit of $20,000?
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