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A Firm Has $50,000 in Fixed Costs, a Selling Price

Question 91

Multiple Choice

A firm has $50,000 in fixed costs, a selling price of $25 per unit, and variable costs of $5 a unit. If the fixed costs are reduced to $40,000:


A) Breakeven volume will decrease.
B) Breakeven volume will increase.
C) Profits will be reduced.
D) Selling price will be increased.

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