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Gail Co Sells a Single Product for $40 Per Unit

Question 24

Multiple Choice

Gail Co sells a single product for $40 per unit.Fixed costs are $160 000 and variable costs equal 75% of sales.If fixed costs increase by $10 000,Gail will have to increase sales by how much just to earn profits equal to those earned before costs increased?


A) $100 000
B) $40 000
C) $80 000
D) $20 000

Correct Answer:

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