A company sells 20,000 widgets in Year One for $8 each.Variable costs are $4 each...

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Accounting

  1. A company sells 20,000 widgets in Year One for $8 each.
  2. Variable costs are $4 each and the company made a net income of $50,000. 
  3. In Year Two, the company raises the sales price to $10 each because of a 50 percent increase in fixed costs. 
  4. Variable cost is not impacted. 
How many units must the company sell just to break even?


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