Assume the following information: Volume 700,000 units Total variable costs $17,500,000 Total fixed costs $9,800,000 Revenue per unit $50 If the company decreases the volume to 650,000 units, what is the profit per unit assuming both 700,000 units and 650,000 units are within the relevant range? a. $10.21 b. $9.92 c. $8.56 d. $7.97
Assume the following information: Volume 700,000 units Total variable costs $17,500,000 Total fixed costs $9,800,000 Revenue per unit $50 If the company decreases the volume to 650,000 units, what is the profit per unit assuming both 700,000 units and 650,000 units are within the relevant range? a. $10.21 b. $9.92 c. $8.56 d. $7.97
Chapter14: Capital Structure Management In Practice
Section14.A: Breakeven Analysis
Problem 7P
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
Transcribed Image Text:Assume the following information:
Volume
700,000 units
Total variable costs $17,500,000
Total fixed costs
$9,800,000
Revenue per unit $50
If the company decreases the volume to 650,000 units, what is the
profit per unit assuming both 700,000 units and 650,000 units are
within the relevant range?
a. $10.21
b. $9.92
c. $8.56
d. $7.97
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