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XYZ Company's single product has a selling price of $25 per unit. Last year the company reported profit of $100,000 and variable expenses totaling $480,000.
XYZ Company's single product has a selling price of $25 per unit. Last year the company reported profit of $100,000 and variable expenses totaling $480,000. The product has a 40% contribution margin ratio. Because of competition, XYZ Company will be forced in the current year to reduce its selling price by $2 per unit. How many units must be sold in the current year to earn the same profit as was earned last year? Select one: O a. 48,000 O b. 22,000 O c. 32,000 O d. 58,000 O e. 40,000
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