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Xavier Incorporated has fixed expenses of $210,500 per year. Right now, Xavier Incorporated is selling its products for $250 per unit Management is contemplating a
Xavier Incorporated has fixed expenses of $210,500 per year. Right now, Xavier Incorporated is selling its products for $250 per unit Management is contemplating a 20% increase in the selling price for the next year. Variable costs are currently 30% of sales revenue and are not expected to change in dollar amount on a per unit basis next year (the company will pay the same amount for variable costs next year). If fixed costs increase 30% next year, and the new selling price per unit goes into effect, how many units will need to be sold to breakeven? A. 730 units B. 273,650 units C. 842 units D. 1,217 units
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