XYZ Manufacturing produces a single product that sells for $150. Variable costs per unit equal...
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Accounting
XYZ Manufacturing produces a single product that sells for $150. Variable costs per unit equal $100. The company expects total fixed costs to be $100,000 for next year at the current sales level of 5,000 units. In an attempt to improve performance, management is considering the following alternative:
Suppose management believes that an $80,000 increase in Research & Development (R&D), a fixed cost, will result in a considerable increase in sales. What is the minimum increase in sales (units sold) that XYZ Manufacturing would need?
a. 1,800
b. 1,600
c. 1,400
d. 1,200
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