6. Pleasant Producers currently incur fixed costs of 1,500 per month, and sell their products at...
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6. Pleasant Producers currently incur fixed costs of £1,500 per month, and sell their products at £15 each. They incur variable costs of £5 per unit manufactured. They are thinking of moving their production facilities to a new, less expensive building. This move will decrease their fixed costs by £200 per month. What effect will the move have on the number of units Pleasant Producers must sell per month to break even? Select one: а. Pleasant Producers will break even at 15 fewer units sold per month. O b. Pleasant Producers will break even at 20 fewer units sold per month. c. Pleasant Producers will have to sell 20 additional units per month to break even. d. Pleasant Producers will have to sell the same number of units as before to break even. 6. Pleasant Producers currently incur fixed costs of £1,500 per month, and sell their products at £15 each. They incur variable costs of £5 per unit manufactured. They are thinking of moving their production facilities to a new, less expensive building. This move will decrease their fixed costs by £200 per month. What effect will the move have on the number of units Pleasant Producers must sell per month to break even? Select one: а. Pleasant Producers will break even at 15 fewer units sold per month. O b. Pleasant Producers will break even at 20 fewer units sold per month. c. Pleasant Producers will have to sell 20 additional units per month to break even. d. Pleasant Producers will have to sell the same number of units as before to break even.
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Managerial Accounting Tools for business decision making
ISBN: 978-1118096895
6th Edition
Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso
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