Bradley Company sells a product that has variable costs of $52 each and a sales price of
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Question:
Bradley Company sells a product that has variable costs of $52 each and a sales price of $77 each. Bradley has fixed costs of $105,000 and a desired profit of $30,000. If the Company is able to reduce its variable cost per unit to $37 while holding all other items constant, the number of units that must be sold to earn the desired profit will
Multiple Choice
increase by 2,025 units.
decrease by 2,025 units.
increase by 3,375 units.
decrease by 3,375 units.
Related Book For
Introduction to Management Accounting
ISBN: 978-0133058789
16th edition
Authors: Charles Horngren, Gary Sundem, Jeff Schatzberg, Dave Burgsta
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