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A Product Sells for $125, Variable Costs Are $80, and Fixed

Question 89

Multiple Choice

A product sells for $125, variable costs are $80, and fixed costs are $45,000. If the selling price can be increased by 20% with a similar increase in variable costs, how many less units would have to be sold to earn $300,000?


A) 5,595 units.
B) 7,667 units.
C) 1,278 units.
D) 6,389 units.

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