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Kitts Co. buys and sells a product that has a variable cost per unit of $23. Kitts' fixed costs amount to $58,000. The product sells for $27 each. The Company is currently making and selling 21,000 units of product. If Kitts is able to increase sales by 4,500 units, the break-even point will A. increase by $18,000 B.decrease by $18,000 C.not change

Kitts Co. buys and sells a product that has a variable cost per unit of $23. Kitts' fixed costs amount to $58,000. The product sells for $27 each. The Company is currently making and selling 21,000 units of product. If Kitts is able to increase sales by 4,500 units, the break-even point will A. increase by $18,000 B.decrease by $18,000 C.not change

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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Kitts Co. buys and sells a product that has a variable cost per unit of $23. Kitts' fixed costs amount to $58,000. The product sells for $27 each. The Company is currently making and selling 21,000 units of product. If Kitts is able to increase sales by 4,500 units, the break-even point will A. increase by $18,000 B.decrease by $18,000 C.not change
Transcribed Image Text:Kitts Co. buys and sells a product that has a variable cost per unit of $23. Kitts' fixed costs amount to $58,000. The product sells for $27 each. The Company is currently making and selling 21,000 units of product. If Kitts is able to increase sales by 4,500 units, the break-even point will A. increase by $18,000 B.decrease by $18,000 C.not change
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