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Pettigrew Company produces a product that has a variable cost of $13 per unit; the product sells for $28 per unit. The companys annual fixed costs total $375,000; it had net income of $75,000 in the previous year. In an

Pettigrew Company produces a product that has a variable cost of $13 per unit; the product sells for $28 per unit. The company’s annual fixed costs total $375,000; it had net income of $75,000 in the previous year. In an effort to increase the company’s market share, management is considering lowering the selling price to $25 per unit.
Required
If Pettigrew desires to maintain net income of $75,000, how many additional units must it sell to justify the price decline?

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Fundamental Managerial Accounting Concepts

Fundamental Managerial Accounting Concepts

ISBN: 978-0078110894

6th Edition

Authors: Edmonds, Tsay, olds

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Question Details
Chapter # 3
Section: EXERCISES SERIES A
Problem: 8
Posted Date: December 07, 2011 03:33:09
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