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(Use the following data needed to achieve the required net profit (BT), to answer this question.) What is the earnings volume required for Option C?
(Use the following data needed to achieve the required net profit (BT), to answer this question.)
What is the earnings volume required for Option C?
Question 12 options:
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20X4 BUDGET AMOUNT PERCENT $1,200,000 100 EARNINGS VARIABLE COST 080.000 90 FIXED OPERATING EXPENSE 100,000 $20,000 NET PROFIT OTHER DATA: 1. Net profit required (BT) $50,000 2. Maximum company market share $1,350,000 3. The market is competitive 4. No advanced project management procedures are applied. Options to obtain the required net profit (BT): Option A: Decrease price by 5% Option B: Increase price by 5% Option C: Decrease fixed costs by $10,000 Option D: Decrease variable cost by 5% of earnings
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