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In 2019, Bramble sold 1000 units at $500 each, and earned net income of $40000. Variable expenses were $400 per unit, and fixed expenses were $290000. The same selling price is expected for 2020. Bramble's variable cost per unit will rise by 10% in 2020 due to increasing material costs, so they are tentatively planning to cut fixed costs by $10000. How many units must Bramble sell in 2020 to maintain the same income level as 2019? O 1000 3556 2667 O5333

In 2019, Bramble sold 1000 units at $500 each, and earned net income of $40000. Variable expenses were $400 per unit, and fixed expenses were $290000. The same selling price is expected for 2020. Bramble's variable cost per unit will rise by 10% in 2020 due to increasing material costs, so they are tentatively planning to cut fixed costs by $10000. How many units must Bramble sell in 2020 to maintain the same income level as 2019? O 1000 3556 2667 O5333

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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In 2019, Bramble sold 1000 units at $500 each, and earned net income of $40000. Variable expenses were $400 per unit, and fixed expenses were $290000. The same selling price is expected for 2020. Bramble's variable cost per unit will rise by 10% in 2020 due to increasing material costs, so they are tentatively planning to cut fixed costs by $10000. How many units must Bramble sell in 2020 to maintain the same income level as 2019? O 1000 3556 2667 O5333
Transcribed Image Text:In 2019, Bramble sold 1000 units at $500 each, and earned net income of $40000. Variable expenses were $400 per unit, and fixed expenses were $290000. The same selling price is expected for 2020. Bramble's variable cost per unit will rise by 10% in 2020 due to increasing material costs, so they are tentatively planning to cut fixed costs by $10000. How many units must Bramble sell in 2020 to maintain the same income level as 2019? O 1000 3556 2667 O5333
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