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XYZ company currently sells 15,000 units a month for $50 each, has variable costs of $20 per unit, and fixed costs of $300,000. The company is considering increasing the price of its units to $60 per unit. If the price is changed, how many units will the company need to sell for profit to remain the same as before the price change? Select one: a. 9,000 b. 10,000 c. 11,250 d. None of the given answers. e. 7,500

XYZ company currently sells 15,000 units a month for $50 each, has variable costs of $20 per unit, and fixed costs of $300,000. The company is considering increasing the price of its units to $60 per unit. If the price is changed, how many units will the company need to sell for profit to remain the same as before the price change? Select one: a. 9,000 b. 10,000 c. 11,250 d. None of the given answers. e. 7,500

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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Please Introduction and both subparts answer please I humble request plz no plagiarism please no plagiarism please 

XYZ company currently sells 15,000 units a month for $50 each, has variable costs of $20 per unit, and fixed costs of $300,000. The company is considering increasing the price of its units to $60 per unit. If the price is changed, how many units will the company need to sell for profit to remain the same as before the price change? Select one: a. 9,000 b. 10,000 c. 11,250 d. None of the given answers. e. 7,500
Transcribed Image Text:XYZ company currently sells 15,000 units a month for $50 each, has variable costs of $20 per unit, and fixed costs of $300,000. The company is considering increasing the price of its units to $60 per unit. If the price is changed, how many units will the company need to sell for profit to remain the same as before the price change? Select one: a. 9,000 b. 10,000 c. 11,250 d. None of the given answers. e. 7,500
Which of the following occurs if a company experiences an increase in its fixed costs? Select one: a. Net income would decrease. b. The contribution margin would increase. c. More than one of the answers would occur. d. The break-even point would decrease. e. The contribution margin would decrease.
Transcribed Image Text:Which of the following occurs if a company experiences an increase in its fixed costs? Select one: a. Net income would decrease. b. The contribution margin would increase. c. More than one of the answers would occur. d. The break-even point would decrease. e. The contribution margin would decrease.
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