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XYZ Company's single product has a selling price of $25 per unit. Last year the company reported profit of $175,000 and variable expenses totaling $840,000.
XYZ Company's single product has a selling price of $25 per unit. Last year the company reported profit of $175,000 and variable expenses totaling $840,000. 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: a. 84,000 O b. 38,500 O c. 101,500 O d. 70,000 O e. 56,000 After a company reaches the breakeven point Select one: O a. The fixed cost is equal to zero O b. The total contribution margin is negative O c. The total contribution margin is higher than the total fixed costs Od. The contribution margin per unit is less than the fixed costs per unit Oe. The total operating income is negative All else being equal, a $10.00 increase in a product's variable expense per unit accompanied by a $10,00 increase in its selling price per unit will: Select one: O a. increase the break-even volume. https://elearn
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