Company XYZ produces and sells scientific calculators . The company is currently producing and selling...
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Company XYZ produces and sells scientific calculators . The company is currently producing and selling 10,000 units. At this level, the fixed expenses were $10,500. In order to expand sales, the company plans to reduce the selling price by $ 2which is expected to improve unit sales by 40% and achieve fixed cost savings of $2,000. Given that the company does not pay commissions to its sales people, the variable expenses per unit are expected to remain the same. What would be the impact on profit? a. Increase by $2,000 b. Increase by $ 1,000 Oc Decrease by $4.000 d. No change e. Decrease by $ 6,000
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