Elk Manufacturing has budgeted the following amounts for its next fiscal year: Total fixed expenses Selling price per unit Variable expenses per unit $440,000 $100 $20 To maintain the original breakeven sales in units if fixed expenses were to increase by 10%, the selling price per unit would have to be O A. increased by 8% B increased by 68% C. decreased by 68% D. decreased by 8%

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Elk Manufacturing has budgeted the following amounts for its next fiscal year:
Total fixed expenses
Selling price per unit
Variable expenses per unit
$440,000
$100
$20
To maintain the original breakeven sales in units if fixed expenses were to increase by 10%, the selling price per unit would have to be
O A. increased by 8%
B
increased by 68%
C. decreased by 68%
D. decreased by 8%
Transcribed Image Text:Elk Manufacturing has budgeted the following amounts for its next fiscal year: Total fixed expenses Selling price per unit Variable expenses per unit $440,000 $100 $20 To maintain the original breakeven sales in units if fixed expenses were to increase by 10%, the selling price per unit would have to be O A. increased by 8% B increased by 68% C. decreased by 68% D. decreased by 8%
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