Reynold's Company has a product with fixed costs of $315,000, a unit selling price of $22, and unit variable costs of $20. The break-even sales in units (rounded to the nearest whole unit) if the variable costs are decreased by $5 is a. 157,500 units b. 21,000 units c. 15,750 units d. 45,000 units
Reynold's Company has a product with fixed costs of $315,000, a unit selling price of $22, and unit variable costs of $20. The break-even sales in units (rounded to the nearest whole unit) if the variable costs are decreased by $5 is a. 157,500 units b. 21,000 units c. 15,750 units d. 45,000 units
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Reynold's Company has a product with fixed costs of $315,000, a unit selling price of $22, and unit variable costs of $20. The break-even sales in units (rounded to the nearest whole unit) if the variable costs are decreased by $5 is
a. 157,500 units
b. 21,000 units
c. 15,750 units
d. 45,000 units
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