Fairfield Company management has budgeted the following amounts for its next fiscal year: Selling price per unit Variable expenses per unit Total fixed expenses $40.00 per unit $25.00 per unit $832,500 If Fairfield Company can reduce fixed expenses by $22,500, breakeven sales in units will: O a. decrease by 900 units O b. decrease by 1,500 units Oc increase by 562 units

Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter6: Cost-volume-profit Analysis
Section: Chapter Questions
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Fairfield Company management has budgeted the following
amounts for IEs next fiscal year:
Selling price per unit
Variable expenses per unit
Total fixed expenses
$40.00 per unit
$25.00 per unit
$832,500
If Fairfield Company can reduce fixed expenses by $22,500,
breakeven sales in units will:
O a. decrease by 900 units
O b. decrease by 1,500 units
Oc increase by 562 units
Transcribed Image Text:Fairfield Company management has budgeted the following amounts for IEs next fiscal year: Selling price per unit Variable expenses per unit Total fixed expenses $40.00 per unit $25.00 per unit $832,500 If Fairfield Company can reduce fixed expenses by $22,500, breakeven sales in units will: O a. decrease by 900 units O b. decrease by 1,500 units Oc increase by 562 units
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