XYZ Company's single product has a selling price of $25 per unit. Last year the company reported profit of $75,000 and variable expenses totaling $360,000. The product has a 40% contribution margin ratio. Because of competition, XYZ Company will be forced in the current year to reduce its selling price by $2 per unit. How many units must be sold in the current year to earn the same profit as was earned last year? Select one: О а. 36,000 O b. 24,000 O c. 43,500 O d. 30,000 О е. 16,500

XYZ Company's single product has a selling price of $25 per unit. Last year the company reported profit of $75,000 and variable expenses totaling $360,000. The product has a 40% contribution margin ratio. Because of competition, XYZ Company will be forced in the current year to reduce its selling price by $2 per unit. How many units must be sold in the current year to earn the same profit as was earned last year? Select one: О а. 36,000 O b. 24,000 O c. 43,500 O d. 30,000 О е. 16,500

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter3: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 5EB: Cadre, Inc., sells a single product with a selling price of $120 and variable costs per unit of $90....

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