Fixed cost $4,000 Break-even sales $20,000 $1,000 Profit Selling price per unit $20 Among the given options, determine new break-even sales if selling price is reduced by 10%. a. $18,000 b. $20,000 c. $40,000 36.000

Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter6: Cost-volume-profit Analysis
Section: Chapter Questions
Problem 3BE
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Fixed cost
$4,000
$20,000
$1,000
Break-even sales
Profit
Selling price per unit
$20
Among the given options, determine new break-even sales if selling price is reduced by
10%.
a. $18,000
b. $20,000
c. $40,000
d. $36,000
Transcribed Image Text:Fixed cost $4,000 $20,000 $1,000 Break-even sales Profit Selling price per unit $20 Among the given options, determine new break-even sales if selling price is reduced by 10%. a. $18,000 b. $20,000 c. $40,000 d. $36,000
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