Narchie sells a single product for $50. Variable costs are 60% of the selling price, and the
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Question:
Narchie sells a single product for $50. Variable costs are 60% of the selling price, and the company has fixed costs that amount to $400,000. Current sales total 16,000 units.
Narchie: ______
A) will break-even by selling 20,000 units.
B) will break-even by selling 13,333 units.
C) will break-even by selling 8,000 units.
D) will break-even by selling 1,000,000 units.
E) cannot break-even because it loses money on every unit sold.
Related Book For
Managerial Accounting
ISBN: 978-1259024900
9th canadian edition
Authors: Ray Garrison, Theresa Libby, Alan Webb
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