Martin Company currently sells its products for $240 per unit. Management is contemplating a 40%...
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Martin Company currently sells its products for $240 per unit. Management is contemplating a 40% increase in the selling price for the next year. Variable costs are currently 10% of sales revenue and are not expected to change next year. Fixed expenses are $130,000 per year. If fixed costs increase 20% next year, and the new selling price per unit goes into effect, how many units will need to be sold to breakeven? A. 6,500 units B. 500 units C. 433 units D. 156,000 units
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