ceramics manufacturer sold cups last year for $7.50 each. Variable costs of manufacturing were $2.25...
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ceramics manufacturer sold cups last year for $7.50 each. Variable costs of manufacturing were $2.25 per unit. The company needed to sell 20,000 cups to break even. Net income was $5,040. This year the company expects the price per cup to be $9.00, variable manufacturing costs to increase 33.3 percent, and fixed costs to increase 10 percent and the income tax rate to remain at 40%. Sales in the coming year are expected to exceed last year's sales by 1000 units. how many units does the company expect to sell this year?
A. 21,000
B. 21,600
C. 21,960
D. 22,600
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