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Company a Has Fixed Expenses of $150,000 and Variable Expenses

Question 65

Multiple Choice

Company A has fixed expenses of $150,000 and variable expenses of $75 per unit.Company B has fixed expenses of $300,000 and variable expenses of $50 per unit.The volume of unit sales necessary to produce exactly the same operating income for Company A and Company B is:


A) 2,000.
B) 6,000.
C) 4,000.
D) 8,000.

Correct Answer:

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