Multiple Choice
Watson Limited has the following cost estimates: variable cost per unit is $22, total fixed costs are $64 000 and the projected sales price is $30 each. The new accountant suggests that fixed costs can be reduced by $6 000. If so, how many units must be sold to produce a profit of $80 000?
A) 18 000
B) 18 750
C) 17 250
D) 10 000
Correct Answer:
Verified
Correct Answer:
Verified
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