Jeffrey Enterprises has budgeted the following amounts for its next fiscal year: Total fixed expenses $49,000 Selling price per unit $55 Variable expenses per unit $10 If Jeffrey Enterprises can reduce fixed expenses by $21,600, how will breakeven sales in units be affected?

Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter16: Cost-volume-profit Analysis
Section: Chapter Questions
Problem 18E: Carmichael Corporation is in the process of preparing next years budget. The pro forma income...
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a. increase by 332 units

b.decrease by 480 units

c.decrease by 332 units

d.increase by 480 units

 

 

 

 

 

Jeffrey Enterprises has budgeted the following amounts for its next fiscal year:
$49,000
Total fixed expenses
Selling price per unit
$55
Variable expenses per unit
$10
If Jeffrey Enterprises can reduce fixed expenses by $21,600, how will breakeven sales in units be affected?
Transcribed Image Text:Jeffrey Enterprises has budgeted the following amounts for its next fiscal year: $49,000 Total fixed expenses Selling price per unit $55 Variable expenses per unit $10 If Jeffrey Enterprises can reduce fixed expenses by $21,600, how will breakeven sales in units be affected?
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