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Why Does the Unit Selling Price Increase When Expected Volume

Question 8

Multiple Choice

Why does the unit selling price increase when expected volume is lower than budgeted volume?


A) Variable costs and fixed costs have to be spread over fewer units.
B) Fixed costs and desired ROI have to be spread over fewer units.
C) Variable costs and desired ROI have to be spread over fewer units.
D) Fixed costs only have to be spread over fewer units.

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