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Phan Company Has Not Reported a Profit in Five Years

Question 1

Multiple Choice

Phan Company has not reported a profit in five years.This year the company would like to narrow its loss to $7,500.Assuming its selling price is $36.50 per unit and its variable costs per unit are $24,how many units must be sold to achieve its target given that total fixed costs are $60,000?


A) 2,188
B) 1,439
C) 4,200
D) 1,600

Correct Answer:

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